Boeing Stock Is Jumping. Recently, United Placed an Order for One Hundred Airplanes

Boeing Stock

Boeing stock (NYSE:BA) is rising after the company received a sizable order for several of its largest jets.

United Airlines (NASDAQ:UAL) announced on Tuesday that it had placed an order for 100 wide-bodies, twin-aisle jets manufactured by Boeing (BA) with an additional option to buy 100 more. It’s the most significant order of wide-body jets ever placed by a domestic airline in the United States.

In premarket trade, shares of Boeing have increased by 3%, while shares of United have decreased by 1%. Futures contracts on the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) have risen by 2.8% and 2.2%.

Boeing Stock Price Increased After the Big Order

The aerospace giant’s stock led the pack of Dow Jones Industrial Average’s DJIA gainers, up 0.23%. The price increase of $6.06 added around 40 points to the price of the Dow, which was down 98 points, equivalent to 0.3%. A report by the Wall Street Journal (WSJ) stated that an agreement between Boeing and United may be finalized as soon as this month and that the deal might be worth billions of dollars in income for Boeing. The story cited persons who were familiar with the situation.

The company’s share price, which was on course for its best close since April 20th, has increased by 19.8% over the past three months, while the Dow increased by 9.5% during the same period.

Between 2024 and 2032, United will receive the jets in question.

According to information provided by the airline on Tuesday, United will get delivery of about 700 brand-new jets by the end of 2032. These new jets will include both 787 and Boeing 737 MAX models.

The Chief Executive Officer of United Airlines, Scott Kirby, stated in a press release that the company has “emerged from the epidemic as the world’s leading global airline and the flag carrier of the United States.” “This order opens new prospects for our customers, workers, and shareholders and further reinforces our position as the industry leader.”

The victory is a good one for Boeing. There are currently 787 planes in United’s fleet.

Additionally, the airline has reached an agreement with Airbus to purchase A350 jets of a size comparable to those in question (AIR.France). The latest order for 787s demonstrates that United is not planning to divert its new, longer-haul capacity toward Boeing’s primary competitor.

Stan Deal, president, and CEO of Boeing Commercial Airplanes, was quoted in a news release as saying that the 737 MAX and the 787 would assist United in speeding its fleet modernization goal and its worldwide growth strategy. The faith that United has placed in the Boeing family of airplanes is an honor for the Boeing team.

Larger jets with twin aisles, such as the 787 and the 350, will be more common sights for members of the flying public on longer international trips. They come at a high cost as well. The price tag for a 787 jet is approximately $300 million. The list price for a Boeing 737 MAX is approximately 120 million dollars.

Large airlines rarely pay the quoted price for their tickets. The precise cost is a carefully guarded secret that cannot be disclosed.

As of Tuesday, airlines had placed orders for around 664 aircraft from Boeing alone for 2022, with 38 of those orders being for Boeing 787 wide-body jets. The United order represents a significant advance.

In 2022, Boeing received 909 orders for new aircraft, including 16 orders for their 787 jets.

As of the closing of trading on Monday, Boeing stock was down 7.5% year to date, while shares of United had been up 1%.

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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.