Boeing (BA) seems poised to score another victory in the wide-body, twin-aisle jet market, much to the delight of investors. Recently, Australian carrier Qantas Airways (QAN.Australia) disclosed that it is finalizing a deal to acquire Boeing 787-10 Dreamliners. Notably, the 787-10 variant is the largest model in the 787 series.
Neither Boeing nor Qantas representatives have provided any immediate comments.
Currently, Qantas operates a diverse fleet comprising aircraft from both Boeing and Airbus (AIR.France), including the 787-9 model. Additionally, the airline has placed orders for Airbus A350 jets, which compete with Boeing’s 787 in terms of size and range.
As of now, before the market opens, Boeing stock has shown a modest increase of 0.7%. Also, S&P 500 and Dow Jones Industrial Average futures are up by 0.4% and 0.2%, respectively.
While this order represents a relatively small move, it is business as usual for both the airline and aircraft manufacturer. However, such orders highlight Boeing’s continued dominance over its European rival in the realm of wide-body, twin-aisle jets.
To date, Boeing has amassed around 1,700 orders for its 787 aircraft, with roughly 1,100 already in operation. In comparison, Airbus has secured roughly 1,000 orders for its A350, of which around 550 are currently in operation.
On the other hand, Airbus outshines Boeing when it comes to narrow-body, single-aisle jets. The company has successfully booked nearly 17,500 orders for its A320 family of aircraft. In contrast, Boeing has received approximately 15,000 orders for its 737 Next Generation and 737 MAX planes.
Boeing’s Rebound: 787 Jet Orders and Stock Performance
Boeing’s recent orders for 787 jets have provided reassurance to nervous investors. The company faced some manufacturing issues with the 787 jet, resulting in a delivery pause in June 2021. However, they have since resolved these problems and resumed deliveries in August 2022. To date, Boeing has successfully delivered over 40 787 jets, including four in July, with one going to Qantas.
While order activity has been relatively quiet for Boeing in recent months, the biennial Paris Airshow held in late June proved to be fruitful. Both Boeing and Airbus received a record-breaking number of orders, surpassing 1,100 planes collectively. Boeing secured around 300 orders while Airbus garnered over 800, including a massive order of 500 jets from Indian low-cost airline IndiGo.
This strong performance has translated into positive stock prices for both Boeing and Airbus. Since the conclusion of the Paris Airshow, Boeing’s stock has risen approximately 10%, while Airbus’ stock has seen a 2% increase. In comparison, the S&P 500 index has risen by about 1% during the same period.
Looking at the year-to-date figures, Airbus’ stock has experienced a notable upswing, surging by 17%. Over the past 12 months, it has seen an even more impressive growth of 26%. Similarly, Boeing’s stock has shown strong gains, rising by 19% year to date and an impressive 43% over the past 12 months. Investors have found encouragement in the increased order activity and the recovery of the air travel industry following the challenges posed by the Covid-19 pandemic.
