Boeing
announced more orders from two customers for its 787 wide-body, twin-aisle, jet Tuesday. The stock isn’t doing all that much because that’s not the segment of the market investors are worried about.
Royal Brunei Airlines ordered four Boeing 787 Dreamliner jets. Thai Airways ordered 45.
“To accomplish our company’s and the national carbon neutral goals by 2050, the 45 new Boeing 787 Dreamliners will be equipped with GEnx engines, which are known for their cutting-edge technology and reduced environmental impact,” said Thai Airways CEO Chai Eamsiri in a news release.
The 787 is efficient. And it has dominated its competition. Boeing has about 800 unfilled orders for 787 jets and has delivered about 1,100. That’s a combined 1,900 jets. Combined orders and deliveries for the similarly sized
Airbus
A350 total about 1,200.
The reverse situation exists in the narrow-body, single-aisle, jet market. Boeing has delivered some 1,400 MAX jets and has about 4,400 unfilled orders. That totals 5,800 jets. Orders and deliveries for the A320neo family of jets total about 10,000 units.
In January, Boeing delivered 25 MAX jets, down from 44 delivered in December and down from 35 delivered in January of 2023.
The emergency door plug incident might have slowed the pace of deliveries for a month. A door plug blew out of a 737 MAX 9 jet in flight on Jan. 5 leading to a temporary ground of MAX 9 jets and more regulatory oversight.
Three of the January deliveries, however, went to Chinese airlines. That was notable, wrote Jefferies analyst Sheila Kahyaoglu in a recent report. China hadn’t taken a new MAX since the worldwide grounding between March 2019 and November 2022 following two deadly MAX crashes within five months.
Wall Street expects about 500 MAX jets to be delivered in 2024. Boeing will likely make roughly 430 jets, but it also started the year with about 140 MAX jets still in inventory. Those planes were built and parked during the worldwide grounding.
Boeing stock was flat in premarket trading Tuesday at $203.80 a share.
S&P 500
and
Dow Jones Industrial Average
futures were both down about 0.4%.
Coming into Tuesday’s trading, Boeing stock was off about 22% so far this year and about 4% over the past 12 months. Recent MAX problems have weighed heavily on shares.
Write to Al Root at [email protected]
Read the full article here