Boeing Stock Continues Ascent As Order Pipeline Swells At Farnborough Airshow

Boeing stock popped to a two-month high Tuesday as the embattled plane maker disclosed a swelling order book at the Farnborough International Airshow.

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Boeing (BA) on Tuesday announced orders for five more 787-9 Dreamliner jets from aircraft leasing company AerCap (AER), its largest customer for the widebody jet. It also announced an order for a dozen more narrow-body Max 737-8 jets from Aviation Capital Group.

Also on Tuesday, the Dow Jones aviation giant announced an order from investment fund 777 Partners for 30 Max 8 jets plus options to purchase up to 36 more, worth a combined $8 billion. The Miami-based fund runs a couple of low-cost carriers in Canada and Australia.

That follows strong orders on Monday from Delta Air Lines (DAL).

The spate of orders comes amid the Farnborough air show near London. It also comes two days after Boeing (BA) said it was “very close” to resuming 787 Dreamliner deliveries after production and supply issues.

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Boeing is competing with Airbus (EADSY) for roughly $21 billion in orders at the important aviation trade show. It’s also playing catch-up with its European rival.

Boeing twice halted 787 Dreamliner deliveries in the recent past due to safety issues, while the 737 was grounded for nearly two years after two fatal flights.

Liftoff For Boeing Stock?

Shares of Boeing jumped 5.7% to 156.18 amid a broad rally on the stock market today, after hitting a two-month high Tuesday. Boeing stock is back above the 50-day moving average but still below the 200-day average. The relative strength line for BA stock is ticking up after a slump.

Airbus gained 3.5%, retaking its 50-day line. Boeing and Airbus report earnings next week.

Delta stock and AerCap climbed more than 4% each.

Delta Orders 100 Boeing 737 Max, 12 More Airbus 220

On Monday, Delta said it would buy 100 Boeing 737 Max 10 jets worth $13.5 billion at list prices and has options to buy an additional 30. And Japan’s ANA agreed to buy 20 Max 8 jets worth $2.4 billion.

Delta expects to start taking Max 10 deliveries in 2025. It’s a much-needed boost for Boeing, because Delta was until now the only major U.S. airline without a Max.

“Boeing is seeing strong market demand for the 737 Max family, with more than 1,000 gross orders across all models since late 2020,” the plane maker said in a release Tuesday.

But on Monday, Boeing CEO Dave Calhoun told CNBC that supply-chain challenges continue, especially in jet engines.

On the second day of Farnborough, Delta also announced an order for 12 more Airbus A220-300 narrow-body jets. The air show is being held for the first time since the Covid pandemic as a headline-grabbing heat wave descends across Europe.

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