Boeing BA shares powered firmly higher Monday after the planemaker secured a $52 billion order for its 777-X widebody and reports suggested China is preparing to clear the way for a sale of new 737 Max jets into the world's biggest aircraft market.
Emirates Airlines placed an order for 100 777-X widebody jets at the Dubai Airshow this weekend, the two companies confirmed, in a deal worth around $52 billion at list prices. The carrier is also buying 5 more of Boeing's 787 Dreamliner, taking its overall backlog to 35 of the flagship jet.
Low cost airline FlyDubai also placed an order for another 30 of the 787 Dreamliners, its first-ever of the widebody, while Turkey-based carrier SunExpress ordered 45 of the workhorse 737 Max, with an option for another 45 jets, as it looks to double its fleet over the coming decade.
"[The Emirates order] is an incredible vote of confidence in Boeing's highly efficient widebody family and the versatility of our 777X and 787 airplanes to meet Emirates' needs for global long-haul travel," said Boeing commercial president Stan Deal. "The 777-9 and 777-8 are the perfect airplanes to support Emirates' growth, improving environmental performance and unmatched payload capability along the way."
Boeing shares were marked 4.3% higher in early Monday trading to change hands at $205.10 each, a move that would nudge the stock into positive territory for the past six months.
The stock was given added heft, as well, by a report from Bloomberg that suggested a new 737 Max order could follow Wednesday's meeting between President Joe Biden and President Xi Xinping at the Asia-Pacific Economic Cooperation summit in San Francisco.
The 737 Max was grounded by civil aviation authorities in China 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.
Boeing CEO Dave Calhoun told investors last month that 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.
Boeing ended the third quarter with 252 of is 737 Max in inventory, Calhoun said, 85 of which were destined for China-based customers.
Boeing's order book grew by 224 plans, with just 10 cancellations, over the third quarter with sales including 150 737 Max jets to European discount carrier Ryanair as part of a $40 billion commitment announced earlier this year and 50 787 Dreamliners to United Airlines UAL amid a massive bet on the strength of the post-pandemic rebound in global travel.
Looking to the longer term, Ryanair has said it would buy as many as 300 737 Max jets, which carry a list price of around $40 billion if the deal is filled to completion, with deliveries phased between 2027 and 2033.
The group's overall order book now stands at 5,172 planes, the highest since December of 2019, valued at around $58 billion.
Boeing, which has reported only one profitable quarter over the past three years, said its adjusted core loss for the three months ending in September was pegged at $3.26 per share, narrowing from the $6.18 per share loss it reported over the same period last year but outside the Street consensus forecast of $2.96 per share.
Group revenues, Boeing said, rose 13.4% from last year to $18.1 billion, a tally that narrowly topped analysts' forecasts of an $18.01 billion tally.
Boeing delivered 105 aircraft to customers over the three months ending in September, the company said, including 27 jets in the month of September alone. However, deliveries of is 737 Max aircraft, the popular narrowbody jet, slowed to the lowest levels since August of 2021
Adjusted free cash flow was pegged at -$310 million for the quarter, however, and Boeing reiterated its full-year forecast of a total between $3 billion and $5 billion. It also sees 787 production rising to 5 planes per month by the end of the year.
However, it trimmed its 737 Max delivery target to a full-year tally of between 375 and 400, down from its prior estimate of between 400 and 450, owing an existing defect in the workhorse aircraft. So far this year, Boeing has delivered 286 733 planes, including 70 over the third quarter.
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