The Dubai Airshow took off on Monday and Dow Jones jet manufacturer Boeing already secured a string of major orders. Elsewhere, China is considering resuming purchases of Boeing's 737 MAX aircraft, according to reports. Boeing stock surged Monday.
Dubai Order Frenzy
Emirates Airline, the world's largest operator of Boeing 777 aircraft, announced a $52 billion order Monday for 95 of Boeing's widebody jets. The order includes 55 Boeing 777-9s, 35 777-8 jets and five 787 planes, bringing Emirates' total 777x order backlog to 205 planes and its 787 backlog to 35 jets, respectively. Emirates currently has nearly 150 777 jets in its fleet, according to Boeing.
The airline ordered 202 GE9X engines to power the additional 777X aircraft. Emirates expects the first 777-9 to join the fleet in 2025 from its previous order for 115 units. The additional jets from Monday's order should arrive in 2035. Emirates expects deliveries for the 777-8 in 2030.
Meanwhile, Flydubai announced a plan to purchase 30 Boeing 787-9 Dreamliners, marking the first order for widebody aircraft. The airline currently operates a fleet of 79 aircraft made up entirely of 737s, with an order backlog of 137 Boeing 737s. Flydubai plans to use the 787s to open new routes and increase capacity on its existing offerings.
SunExpress, a joint venture between Turkish Airlines and Lufthansa, committed to purchasing up to 90 Boeing 737 aircraft, according to a Monday announcement. The SunExpress agreement includes an order for 28 737-8s, 17 737-10 models and an option to purchase up to 45 additional 737 MAX planes.
SunExpress previously ordered 42 737-8 aircraft, with nine already delivered.
Dow giant Boeing forecasts widebody airplanes will comprise 20% of its deliveries to Middle East airlines over the next two decades, giving the territory the highest regional percentage worldwide.
Meanwhile, rival Airbus secured an order for 30 additional A220-300 aircraft from airBaltic. The order increases the airline's total order book to 80 jets and makes the Latvian airline the largest A220-300 customer in Europe.
China Rumors
Elsewhere, China's government is considering lifting a commercial sales freeze on Boeing 737 Max jets, according to reports from Bloomberg citing sources familiar with the matter. The news arrives just as President Joe Biden and China President Xi Jinping are scheduled to meet at the Asia-Pacific Economic Cooperation (APEC) conference in San Francisco on Wednesday. That sets the stage for a possible lift on the order freeze in conjunction with the meeting. China is considering a commitment to buy 737 jets, the report said. However, discussions are still underway. President Xi is not expected to announce the formal order.
Boeing hasn't made significant sales in China since 2018 after the 737 was grounded following two crashes.
Boeing Stock
BA shares rallied 4% Monday. Boeing stock reclaimed its 50-day moving average during its Friday advance. Shares are up 7.4% so far this year through Monday's close. Boeing stock is consolidating with a 243.10 buy point.
Airbus, which trades in American depositary receipts (ADRs) under the ticker EADSY, rose 1.6% Monday. EADSY stock rallied more than 17.5% this year and is approaching its 2023 highs from late July.
Air Lease, which provides jet leasing and fleet management services, saw shares slide 1.5% Monday.
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