LONDON (ShareCast) - (Sharecast News) - Shares in Airbus flew higher on Wednesday after the French aerospace giant announced it would hike its dividend payout ratio over the coming years amid predictions of strong demand for aircraft.
The company said it would "strengthen its commitment to increasing shareholder returns" by extending the upper range of its dividend payout ratio to 30-50% from the current 30-40%.

The board also reiterated its expectations for profitable growth and a cash conversion target of around one over a five-year horizon.

The announcement came during the Paris Air Show trade event, where the firm reported a number of large aircraft orders.

Last week, Airbus said it foresees average air traffic growth of 3.6% per year over the long term, predicting global demand for 43,000 aircraft (both passenger and freight) between now and 2044.

The stock was up nearly 2% at €163.74 by 1452 in Paris amid a wider market sell-off, with the Cac 40 down 0.3%.

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