Boeing (BA) received a big 787 Dreamliner order and reportedly plans record production of its bestselling 737 jet as air travel rebounds. Boeing stock edged up Tuesday near multimonth lows.
United Orders 110 Boeing, Airbus Jets
Late Tuesday, United Airlines (UA) announced an order for 110 aircraft, including 50 Boeing Dreamliner widebody jets.
The airline’s order also includes 60 Airbus (EADSY) A321 narrow-body jets. Delivery is set to begin in 2028.
The order was widely expected. United said it converted purchase options and rights into firm orders.
United also announced new options for up to 50 more Boeing 787s and new purchase rights for up to 40 A321neos at the end of the decade.
On Monday, sources told Reuters that Boeing plans to raise production of its top-selling 737 narrow-body jet to 57 per month by July 2025, which would mark a record high.
Boeing continues to ramp up on the troubled jet after a slump in production. The 737 was grounded in 2019 after two fatal crashes. It took another hit from the Covid-19 pandemic.
Before 2019, Boeing was producing 52 737s a month and was on track to a goal of 57.
Boeing declined to comment, Reuters said.
Boeing Stock Rises, Remains in Downtrend
Shares of the Dow Jones aviation giant gained 0.6% to 188.92 on the stock market today.
Boeing stock led advancing stocks on the Dow Jones index Tuesday. But BA stock remains in a two-month downtrend as investors look past swelling orders to its actual plane production ramp.
On top of that, challenges continue for Spirit AeroSystems (SPR), which supplies the Boeing 737 and 787 jets, and abruptly fired its CEO Tom Gentile at the weekend.
The board of the Wichita, Kan., company appointed an interim head from within its ranks: former Boeing executive Pat Shanahan.
Spirit Aero woes have caused 737 production disruptions at various times in 2023.
Spirit stock fell 0.6% Tuesday, after falling last week to its worst level since the pandemic began.
Airbus stock shed 1.2% to 32.54 as it works on a 37.67 buy point from a flat base, the MarketSmith chart shows. EADSY stock is right at the bottom of the consolidation, at six-month lows.
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