Thursday, February 9, 2023
HomeMarketBoeing Stock Jumps. United Just Ordered 100 Airplanes.

Boeing Stock Jumps. United Just Ordered 100 Airplanes.

Boeing landed an order for up to 200 787 jets from United Airlines.

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Daniel Slim/AFP/Getty Images

Boeing
bagged a big order for some of its biggest jets and its stock is rising.

United Airlines
(ticker: UAL) announced Tuesday an order for 100
Boeing
(BA) 787 wide-body, twin-aisle jets with an option to purchase 100 more. It’s the largest wide-body jet order from a U.S. air carrier in history.

Boeing stock is up 3% in premarket trading, while United stock dipped 1%.
S&P 500
futures have surged 2.8% and Dow Jones Industrial Average futures have climbed 2.2%.

The jets will arrive at United between 2024 and 2032. Overall, United will be taking delivery of about 700 new jets by the end of 2032, including both 787 and Boeing 737 MAX jets, the airline said Tuesday.

“United emerged from the pandemic as the world’s leading global airline and the flag carrier of the United States,” said United CEO Scott Kirby in a news release. “This order further solidifies our lead and creates new opportunities for our customers, employees and shareholders.”

It’s a nice win for Boeing. United already flies 787 jets. The airline has also agreed to purchase similar-sized A350 jets from
Airbus
(AIR.France). The new 787 order shows United isn’t shifting its new, longer-haul capacity toward Boeing’s chief rival.

“With this investment in its future fleet, the 737 MAX and 787 will help United accelerate its fleet modernization and global growth strategy,” said Stan Deal, president and CEO of Boeing Commercial Airplanes, in a news release. “The Boeing team is honored by United’s trust in our family of airplanes.”

Both the 787 and 350 jets are larger, twin-aisle planes that the flying public will see on longer, international routes. They are pricey, too. A 787 jet lists for roughly $300 million. A Boeing 737 MAX lists for roughly $120 million.

Large airlines don’t typically pay list prices. The actual pricing is a closely guarded secret.

Coming into Tuesday, airlines had ordered about 664 just from Boeing so far in 2022, including 38 Boeing 787 wide-body jets. The United order is a big increase.

In 2022, Boeing took in 16 orders for 787 jets and 909 orders for new aircraft overall.

Boeing stock is down 7.5% year to date, United shares have gained 1%, as of Monday’s close.

Write to Al Root at allen.root@dowjones.com

Credit: marketwatch.com

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