Boeing Stock (NYSE:BA)
According to reports, United Airlines Holdings (UAL) is very close to placing a massive order for new planes. One of two firms that stands to gain from the contract, Boeing (NYSE:BA), had its stock price soar as much as 3% on Friday morning.
What’s the Reason?
Boeing stock has remained relatively stable for some time. The company’s activities have been slowly returning to normal after being severely disrupted by problems with the 737 MAX and the subsequent pandemic.
The time required for a full recovery is now the main concern. Boeing stock investors are concerned that a global recession may drive airlines to shy away from new orders or postpone the delivery, despite Boeing’s expectations that speeding up deliveries will help it pay off most of its additional debt in 2020.
Nonetheless, United Airlines seems to be operating normally. Bloomberg reports that United plans to purchase over 100 widebody planes, with the Boeing 787 Dreamliner and the Airbus (EADSY -2.46%) A350 as the leading candidates.
If the contract is made public, it will be one of history’s most significant orders of widebody planes. The A350 or Dreamliner programs would get a significant boost. Because of the global travel shutdown caused by the epidemic, sales of longer-range planes have been declining in recent years.
What’s Next?
United’s decision to shop around is good news for Airbus and Boeing (NYSE:BA). A victory for either business would be a significant boost. The fact that it is now a buyer’s market is, in part, what has United interested in making a purchase at this time. Still, Boeing stock investors should keep this in mind. The quantity you’ve ordered would be helpful to each manufacturer of airplanes. Both Boeing and Airbus are offering significant price reductions from the list.
United’s procurement of smaller A321neo aircraft from Airbus last year gives the European manufacturer a possible advantage against Boeing.
Even if Boeing gets the contract, as reported in the headlines, it will be only one step in a lengthy and arduous rebuilding process. There’s good news here, but Boeing stock should be cautiously approached.
Featured Image- Megapixl @ Vladsseven
Author Shariq Khan 
