Airbus Shares Rise 6% in Three Days on Reports of Major China Order

Airbus Shares Rise on Reports of Major Chinese Aircraft Order

Shares of Airbus SE have surged significantly over the past three trading sessions, rising more than 6% amid reports of a potential large-scale order from Chinese airlines. On Wednesday, June 4, Airbus shares opened at €169.92, up 4% from the previous close of €166.44, and reached an intraday high of €173.26. This rally has brought the stock close to its 52-week peak of €177.30, reflecting renewed investor enthusiasm driven by speculation of a substantial aircraft purchase by China.

Prospective Order and Diplomatic Context

According to a Bloomberg report, Chinese carriers are considering an order for up to 300 narrowbody and widebody jets, with the possibility of expanding the deal to as many as 500 aircraft. This potential transaction is expected to be formalized as early as next month, coinciding with a planned visit to Beijing by European leaders. The diplomatic engagement, which will see French President Emmanuel Macron and German Chancellor Friedrich Merz commemorate 50 years of diplomatic relations between China and the European Union, is viewed as a key factor in advancing the negotiations. France and Germany, as Airbus’s largest shareholders, hold significant influence over the company’s strategic direction, and their involvement underscores the close interplay between international diplomacy and global trade agreements.

Earlier reports from Reuters in April indicated that China had been engaged in intermittent discussions regarding a purchase of this scale, highlighting the ongoing nature of the negotiations.

Market Reaction and Analyst Insights

Market analysts have noted the sharp increase in Airbus’s share price following the reports of the prospective Chinese order. Avinash Gorakshkar, Head of Research at Profitmart Securities, acknowledged the surge as a response to the news but urged caution, emphasizing that no official confirmation has yet been made by either Airbus or Chinese authorities. He also mentioned that the European Exchange may seek further clarification on the recent price movements.

From a technical perspective, Anshul Jain, Head of Research at Lakshmishree Investments, pointed out that Airbus shares are approaching a bullish breakout from a 61-week-long cup and handle pattern, with a critical breakout threshold at €167. Jain highlighted strong institutional accumulation and elevated trading volumes as indicators supporting this base formation. Should the stock surpass this level, he anticipates sustained upward momentum that could propel the price toward €195, presenting a compelling opportunity for both positional and momentum investors.