Is Boeing stock finally about to take off?

Boeing (NYSE: BA) has been one of the most troubled major companies in the U.S. in the last year or so. 

The aeronautics giant had faced accusations of manslaughter over a series of high-profile and deadly crashes in 2018 and 2019, and the ghosts of Boeing’s relaxed quality control came to haunt it at the very start of 2024.

So far, BA shares have collapsed 36.74% in 2024 to their press time price of $159.26 on a major loss of customer confidence and, more recently, due to a major worker strike.

In the pre-market on October 21, however, things may finally be looking up for Boeing shares. The aeronautics giant has almost simultaneously announced a large aircraft order from one of its big customers and a possible deal with the striking employees on the horizon.

Boeing confirms a major Emirates cargo plane order

Specifically, just days after UAE’s Emirates criticized Boeing over delays, the aerospace corporation confirmed it had received an order for an additional five 777 freight planes.

The order will bring Emirates’ total Boeing fleet to 252 widebody airplanes, including 17 777 cargo planes. 

Additionally, it comes as an important show of confidence at a time the American aircraft manufacturer is reeling from a seemingly ceaseless deluge of footage showing various kinds of mishaps, and most commonly, aircraft parts falling off during taxing of flight.

The five-airplane purchase likely accounts for part of the previously mysterious 11-aircraft order from an undisclosed customer, initially unveiled in September.

Is the Boeing strike finally coming to an end?

Perhaps even more important, Boeing recently reached a tentative agreement that would end the mass worker strike at the company. The labor dispute, which started on September 13, was variously estimated to cost the company anywhere between $50 and $150 million each day.

On October 19, the International Association of Machinists and Aerospace Workers, the relevant union, revealed that Boeing employees will soon vote on a new proposal aimed at resolving the issue. 

Per the available information, Boeing offered a 35% pay increase spread across four years, incentive pay and an ratification bonus, as well as improved retirement security, 401(k) contributions, and an improved sick day policy.

The offer came just weeks after the aeronautics giant rescinded its ‘best and final’ offer, which, for example, entailed a 30% pay increase over a four-year period.

The striking workers initially demanded a 40% raise, better retirement security, better healthcare and easing of mandatory overtime, guarantees the next aircraft would be built in the Puget Sound region, and improvements intended to address the ailing manufacturing quality.

What is next for Boeing stock

BA shares have been reacting positively to the announced Emirates’ order and the tentative deal with the workers and it is – once the Monday pre-market is taken into account – 3.64% in the green in the last 5 stock market days.

Along with investors, Wall Street analysts have also reacted positively to the developments. On October 21, UBS assigned a ‘buy’ rating to BA stock, and on the same day, RBC Capital reaffirmed its previous assessment that Boeing shares are a wise investment.