Boeing’s stock jumps on report China may end freeze on 737 Max aircraft and after flurry of deals at Dubai Air Show
Shares of Boeing Co. climbed on Monday following a flurry of deal news and a report that the Chinese government may be close to lifting a commercial freeze on its 737 Max jetliner.
Long-haul carrier Emirates announced at the Dubai Airshow a $52 billion deal for Boeing planes, while SunExpress, a joint venture between Turkish Airlines and Lufthansa
said it would purchase 90 737 MAX jets. Other orders announced Monday included Royal Jordanian Group’s and low-cost FlyDubai’s, with both airlines ordering 787 Dreamliners.
rose 4%, extending a winning streak to a fourth day and on track for its highest close since Sept. 18, when it closed at $205.12, and its largest one-day percentage increase since July 26, when it rose 8.72%
Elsewhere, Wednesday’s meeting of President Joe Biden and China’s president Xi Jinping at this week’s gathering of the Asia-Pacific Economic Cooperation (APEC) in San Francisco could also prove fruitful for the aircraft maker.
A long-running commercial freeze on Boeing’s 737 Max jetliner could be announced in conjunction with that meeting, as a sign of thawing relations between the two countries, according to a Bloomberg report that cited sources familiar with the matter.
The potential deal is still being discussed and may not happen, those sources added. Xi is not expected to announce a formal order for those planes, they added.
Boeing hasn’t logged any major sales of the 737 Max in China since 2018. The aircraft was grounded globally after two deadly crashes in 2018 and 2019, and the Federal Aviation Administration didn’t approve changes in the design and allow it to fly again until nearly two years later.
Tensions between the U.S. and China have also weighed on Boeing’s efforts to revamp sales in the country.
A spokesman for Boeing declined to comment on the report. MarketWatch has also reached out to China’s Foreign Ministry for comment.
In late August, Bloomberg reported that two 737 Max aircraft slated for China had been removed from storage and readied for delivery, citing sources who had expected handovers “within weeks.”
As of end July, Boeing had 118 unfilled Max orders all destined for China, 34 of those for China Southern, with orders for 25 wide-body 777 jets as well as 11 “Dreamliner” 787 models from Chinese airlines, according to BC Capital analyst Ken Herbert. Boeing’s 2023 guidance and further out doesn’t include any China sales, he said.
Shares of Boeing have gained more than 7% so far this year, compared with an advance of about 14% for the S&P 500 index
Claudia Assis in San Francisco contributed to this report.