Boeing announced an order for 150 of its 737 Max airplanes early Thursday from India-based Akasa Air. Boeing stock swung higher Thursday to lead the Dow.
Akasa Air announced at the Wings India 2024 airshow it had placed a follow-on order for 150 Boeing 737 Max jets, including 737-10's and additional 737-8-200 planes. The new 737 Max variants will increase Akasa's capacity and range for new and existing routes, while also reducing fuel use and carbon emissions, Boeing said. The companies did not disclose financial details of the deal.
The Wings India 2024 airshow runs from Thursday through Sunday.
Thursday's announcement brings Akasa's total Boeing order book to 226 jets as it plans to expand its domestic and international network. The budding airline currently holds about 4% of India's domestic market. It serves 18 destinations with a fleet of 22 737 Max jets. Its first commercial flight was on Aug. 7, 2022.
Safety Concerns
The order provides Boeing a much-needed boost. The jet builder has faced increased scrutiny over the past month following a fuselage panel blowout on a 737 Max 9 jet during an Alaskan Airlines flight on Jan. 5. The Federal Aviation Administration grounded all 737 Max 9 model aircraft in the U.S. for inspections. The order affected about 171 jets.
Akasa Air does not operate any 737 Max 9 planes, the Wall Street Journal reported.
Earlier this week, Wells Fargo downgraded Boeing stock to equal weight from overweight, noting the FAA inspection audit "significantly" increases the risk of delivery impacts.
Elsewhere, China Southern Airlines ramped up its safety inspection regimen for Boeing 737 Max aircraft. And Chinese authorities have required safety inspections for all 737 Max aircraft operating in the country, which could slow deliveries for an unspecified amount of time.
Wells Fargo slashed its price target on BA stock to $225 from $280 following the FAA audit and news from China.
Boeing Stock
Boeing stock surged 4.2% Thursday, trimming the stock's loss for the week to 2.8%, up from a loss of more than 8% on Tuesday. The stock shed 12.6% last week after the Alaska Airlines incident.
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