May 2 (Reuters) - Howmet Aerospace raised its full-year forecasts and increased its quarterly dividend on Thursday, powered by demand for its engine products and fastening systems from planemakers looking to cater to a surge in air travel demand.

Shares of the company, which supplies to both Airbus and Boeing, jumped about 15% to a near 16-year high of $76.60 as first-quarter results also topped estimates.

Pennsylvania-based Howmet now expects 2024 revenue between $7.23 billion and $7.38 billion, up from its prior forecast of $7 billion to $7.2 billion.

The forecast assumes an average build rate of 20 737 MAX aircraft per month this year at Boeing, Howmet CEO John Plant said in a statement. The planemaker's production has dropped in recent weeks as it works to fix quality issues.

Howmet has the ability to withstand the reduced narrow-body build, notably at Boeing, he said on a post-earnings call.

"However, a more favorable demand outlook in other aspects of our business have driven an overall $200 million increase in Howmet Aerospace's full-year 2024 revenue guidance," Plant said.

Full-year adjusted profit per share is expected to be $2.31 to $2.39, higher than an earlier forecast of $2.10 to $2.20.

"The guidance raise signals confidence in the outlook despite these 737 issues, and with a consistent track record of beating forecasts, we expect the market to be quite satisfied with the outlook," said Seth Seifman, an analyst at J.P. Morgan.

For the quarter through March, adjusted profit per share rose to 57 cents, beating expectations of 52 cents.

Howmet expects to increase its quarterly dividend by two cents to $0.07 per share. (Reporting by Anandita Mehrotra; additional reporting by Abhijith Ganapavaram in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila)