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Airbus shares rally after large Chinese order

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Airbus shares rally after large Chinese order
FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau   -   Copyright  REGIS DUVIGNAU(Reuters)
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PARIS (Reuters) – Airbus shares rose on Tuesday after the European planemaker won a deal worth tens of billions of dollars to sell 300 aircraft to China.

Airbus was up 1.9 percent in early session trading. French officials said the deal was worth some 30 billion euros (£25.75 billion) at catalogue prices. Planemakers usually grant significant discounts.

The Chinese order was announced late on Monday, coinciding with a visit to Europe by Chinese President Xi Jinping and matching a China record held by U.S. rival Boeing.

Investment bank Citigroup kept a “buy” rating on Airbus.

“We do not have details of the delivery schedule of this order, but China has been taking about 20-25 percent of Airbus production per year and given the A320 family is sold out at announced production rates out to 2024/25, we believe this increases the probability of Airbus moving to a production rate of 70 per month,” wrote Citigroup.

(Reporting by Sudip Kar-Gupta; Editing by Leigh Thomas)

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