Search

Boeing Gets a Brand New 737 MAX Order, and the Stock Is Jumping - Barron's

farihaue.blogspot.com

Boeing said it got a new order of two dozen 737 MAX jets.

Silvio Avila/AFP via Getty Images

Boeing got a new customer for its 737 MAX jets, and the new order is driving the commercial aerospace giant’s shares higher. Friday’s gain caps off what has been an incredible week for Boeing stock.

Boeing (ticker: BA) shares rose 6.8% Friday. The shares are on a five-day winning streak, up more than 20% over the past week. The S&P 500, for comparison, is up about 2.6%. The Dow Jones Industrial Average is up  4% over the same span, thanks in large part to Boeing.

The Dow is a price-weighted index, and Boeing has the fourth-biggest stock price at about $270, making Boeing a relatively large component of the Dow. The stock’s gains this week have added around 300 points out of the Dow’s overall gain of almost 1,300 points this week.

Private-equity firm 777 Partners is the buyer of two dozen MAX jets, and has options for 60 more. It’s fair to say 777 came out of nowhere: It’s the first Boeing order by the company, and 777 Partners isn’t a traditional airline or aircraft lessor.

Boeing referred Barron’s to its news release when asked about 777.

“We could not be more excited to partner with Boeing on this transformative order for our growing aviation business,” 777 managing partner Joshua Wander said in Boeing’s news release. “The retrenchment of traditional carriers globally has created an unprecedented market opportunity for more agile and cost-efficient operators.”

777 Partners has several investments in low-cost airlines around the globe, and the MAX jets will be flown by those airlines. 777 Partners wasn’t immediately available for a request for comment about its purchase or strategy for plane deployment.

The MAX has had a rough two years. It was grounded worldwide back in March 2019 after two deadly crashes within a five-month span. The plane only started flying passengers again this past December.

The 737 program saw more than 500 jet cancellations in 2020. The pandemic, of course, decimated demand for commercial air travel. Boeing, however, has managed to generate a couple of additional orders, or letters of intent to purchase, for the MAX jet over the past couple of years.

Airlines and aircraft lessors are still interested in the MAX because it is cheaper to operate than older models, and airlines always need to cut costs. Boeing has about 4,000 MAX jets in backlog.

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

Let's block ads! (Why?)



"Max" - Google News
March 13, 2021 at 04:42AM
https://ift.tt/3exGKrF

Boeing Gets a Brand New 737 MAX Order, and the Stock Is Jumping - Barron's
"Max" - Google News
https://ift.tt/2YlVjXi


Bagikan Berita Ini

0 Response to "Boeing Gets a Brand New 737 MAX Order, and the Stock Is Jumping - Barron's"

Post a Comment

Powered by Blogger.