Boeing Co. (NYSE:BA) has secured a $36.2 billion deal with Korean Air for 103 Boeing planes, a move that comes amid U.S. President Donald Trump‘s efforts to boost American business overseas.
Landmark Boeing Deal Boosts Korean Air's Fleet Upgrade
The deal, announced on Monday, includes a mix of 787, 777, and 737 passenger jets, as per a joint statement by the two companies. This deal is seen as a significant move to modernize the South Korean flag carrier’s fleet, especially as it merges with Asiana Airlines.
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Boeing’s commercial planes chief, Stephanie Pope, hailed the deal as a “landmark agreement.” The deal covers 50 Boeing 737-10 passenger aircraft and 45 long-range jets, along with eight 777-8 Freighter cargo planes for Korean Air. This deal is expected to support around 135,000 jobs across the U.S.
The agreement was revealed following a meeting in Washington between South Korean President Lee Jae Myung and Donald Trump, where they discussed the 15% U.S. tariffs imposed on South Korea in July.
Korean Air also announced a separate deal Monday with GE Aerospace owned by General Electric Co. (NYSE:GE) on the purchase and maintenance of engines valued at $13.7 billion.
Boeing Nears 500-Jet China Deal Amid Strike At Home
This deal comes at a crucial time for Boeing, which is reportedly close to securing a massive aircraft order from China that could involve as many as 500 jets. The last major Boeing order from China dates back to President Trump’s 2017 state visit.
Boeing’s second-quarter earnings call highlighted a significant positive shift in the global trade environment, with recent agreements under the Trump administration poised to alleviate tariff pressures and bolster the aerospace giant’s massive backlog of over $600 billion.
However, Boeing is currently facing challenges on the domestic front, with its defense operations in Missouri and Illinois remaining halted as 3,200 machinists strike for higher pay and benefits.
Meanwhile, Trump’s efforts to boost American business overseas have been yielding results, with South Korea’s Hyundai announcing a $5 billion increase in its investment into the U.S. shortly after the meeting between Trump and Lee.
Benzinga's Edge Rankings place Boeing in the 83rd percentile for momentum and the 29th percentile for value, reflecting its average performance. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
