Boeing (BA) -) shares extended recent gains in early Thursday trading after a report suggested the planemaker has received permission to resume deliveries of its 737 Max aircraft to China.
The Air Current, an aerospace news outlet, said China's Civil Aviation Administration (CCAC) granted permission for new 737 Max planes to enter the world's biggest aircraft market following a meeting with Boeing in early December.
Civil aviation authorities in China grounded the 737 Max in 2019, following crashes in Indonesia and Ethiopia, while Boeing has been frozen out of the world's biggest aircraft market amid trade tensions between Washington and Beijing.
The workhorse jet, Boeing's most-profitable aircraft, resumed service last year. But new deliveries had been placed on hold by the CAAC as it asked domestic carriers to comment on changes to the aircraft's aviation control system software and display after concluding it was satisfied with Boeing's modification efforts.
Reuters has also reported that privately owned Juneyao Airlines is set to receive a new 787 Dreamliner, a move that would mark the end of a two-year freeze on widebody deliveries.
Boeing 'encouraged' about China prospects
Boeing CEO Dave Calhoun told investors in October he was "encouraged by recent signs of progress and continue to work closely with our customers on the timing of returning to delivery" into the China market.
In an autumn update of its long-term projections, Boeing estimated China would need around 8,560 new aircraft over the next two decades. The figure translates to overall sales of around $1.47 trillion and suggests it will account for around 20% of global demand.
Boeing shares were marked 1.5% higher in early Thursday trading to change hands at $264.07 each, a move that would extend its one-month gain to around 21.1%.
Boeing's orders from Lufthansa and Emirates
Earlier this week, Boeing shares were also given a lift from news that it won a key 737 Max order from Germany's Lufthansa, marking its first sale of single-aisle jets to Europe's largest carrier in nearly three decades.
Last month at the Dubai Airshow, Boeing secured a $52 billion order for its 777-X widebody from Emirates Airlines. The carrier also committed to buy five more of Boeing's 787 Dreamliners.
Boeing ended the third quarter with 252 of its 737 Max in inventory, CEO Calhoun had said, 85 of which were destined for China-based customers.
Boeing's order book grew by 224 planes, with just 10 cancellations, over the third quarter.
Sales included 150 737 Max jets to the European discount carrier Ryanair as part of a $40 billion commitment announced earlier this year; and 50 787 Dreamliners to United Airlines amid a massive bet on the strength of the postpandemic rebound in global travel.
The group's overall order book now stands at 5,172 planes, the highest since December 2019, valued at around $58 billion.
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