Boeing (BA) -) shares moved higher in early Tuesday trading after the planemaker scored a major win over its European rival Airbus with a 737 Max order from Germany's Lufthansa.
The deal marks the aerospace giant's first sale of a single-aisle plane to the carrier in nearly three decades.
Lufthansa, Europe's largest airline, will buy 40 of Boeing's workhorse 737 Max jets, with an option to increase the overall order to 60, the group's first purchase of single-aisle planes from Boeing since 1995.
The new 737-8 Max aircraft reduces CO2 emissions by 20% and has half the noise footprint of older generation planes, Lufthansa said, allowing it to "modernize our short- and medium-haul fleet and in achieving our carbon CO2 reduction targets."
The group also purchased 40 Airbus A220-300s, with options for another 60 of the aircraft, to be delivered between 2026 and 2032. The overall order's value is estimated at $9 billion at current list prices.
"Our relationship with the Lufthansa Group has led to a number of industry changing achievements, and we are delighted to see the 737 return to an original launch customer's fleet," said Boeing's commercial airplanes president, Stan Deal.
"The Lufthansa Group has set bold targets to decarbonize its operations," he added. "The 737-8 will help the Lufthansa Group meet those sustainability targets with significant improvements in fuel use, emissions, and community noise impacts, all while reducing costs for the airline."
Boeing shares were marked 1.3% higher in early afternoon trading following news of the Lufthansa deal to change hands at $263.81 each, a move that would extend the stock's six-month gain to around 24%.
Lufthansa deal follows Emirates Air deal
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, Boeing Chief Executive Dave Calhoun 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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