On Tuesday, Boeing Co. (NYSE:BA) secured a $36.2 billion deal with Korean Air for 103 planes, including a mix of 787, 777, and 737 passenger jets.
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.
Boeing is nearing a deal to secure a substantial aircraft order from China, potentially involving up to 500 jets, which could end a years-long sales drought in the world’s second-largest aviation market. The order is expected to support approximately 135,000 jobs across the U.S., Bloomberg reported.
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The deal is still contingent on the United States and China maintaining progress in easing trade tensions, which flared during US President Donald Trump’s first term.
Citing data from Aero Analysis Partners (AAP), Bank of America Securities (BofA) wrote Boeing deliveries remain solid despite the typical summer slowdown, with 28 MAXs delivered month-to-date.
AAP expects to deliver high-30s to low-40s 737s in August, with 14 aircraft already in customer acceptance flights. If met, this would mark the strongest August total since 2018’s 48 deliveries and an uptick from 37 in July.
Analyst Ronald Epstein maintained a Buy rating on Thursday with a price forecast of $270.
BofA considers the potential deals with Korean Air and China as positive and consistent with its view that Boeing’s order momentum will sustain as the Trump administration progresses with international trade deals.
Boeing expects Federal Aviation Administration (FAA) approval to raise 737 output to 42 jets a month by October, supported by stable production at the current rate of 38.
Despite the usual summer slowdown, August deliveries are projected in the low-to-mid 30s, positioning Boeing well for a potential cap lift in the fourth quarter.
BofA analyst says deliveries for the 787 planes remain strong, with three to four jets already handed over and three more expected. While slightly below July’s eight deliveries, the pace aligns with the year-to-date average.
Boeing reported stronger-than-expected revenue for the second quarter, driven by a sharp rise in commercial aircraft deliveries. However, its adjusted loss per share was wider than Wall Street projections.
Revenue climbed 35% year over year to $22.75 billion, beating the Street estimate of $20.20 billion, led by higher delivery volume and improved operational performance.
Boeing delivered 150 commercial airplanes in the quarter, up 63% from a year ago. The total company backlog rose to $619 billion, including more than 5,900 commercial aircraft orders valued at $522 billion.
Price Action: BA stock is trading higher by 0.09% to $235.83 at last check Thursday.
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