Boeing shares closed higher in the US Friday ahead of the Farnborough air show held just outside of London this week. And, it appears that positivity was well-founded – Boeing has already secured a $4.7 billion order from DHL for 14 777 Freighters.
Boeing shares ended the US Friday session 4.01% higher at $349.70. The stock has been moving broadly higher in the past week or so, despite uncertainty surrounding the ongoing US-China trade disagreements.
Boeing’s first air show order
Earlier Monday Boeing announced it had secured its first order at the air show. Global logistics firm DHL has placed an order for 14 777 Boeing Freighters for a cost of $4.7 billion. The business has also secured the purchase rights to a further 7 planes from the US plane manufacturer.
“We are delighted to announce the acquisition of 14 new 777 Freighters as we renew part of our long-haul fleet with this best-in-class fuel efficient freighter type that will make a significant step towards DHL's zero emissions target by 2050,” said DHL’s executive President of Global Network Operations & Aviation, Charlie Dobbie.
Boeing then quickly announced a second deal. Jackson Square Aviation has ordered 30 737 Max planes in a purchase worth $3.5 billion.
“Jackson Square Aviation has reached significant heights since its founding, having financed more than 100 Boeing airplanes,” said Ihssane Mounir, senior VP for Boeing’s Commercial Sales and Marketing.
US-China trade dispute impact
The Farnborough air show is the largest so far this year and is an event that attracts a variety of aeroplane industry figures. New ideas are discussed, plans made and orders placed across all the different areas that are vital to the future development of the globally and economically important airspace industry.
However, while the air show is a key event for the industry. Boeing’s chief executive told reporters that right now is a tough time for aerospace and the global economy.
“Aerospace thrives on free and open trade,” Boeing’s chief executive Dennis Muilenburg said.
“The aerospace sector drives economic benefits globally…. We are concerned it [US-China trade dispute] could affect supply chain costs - but those supply chains are flowing in both directions, it is an intricate network around the world.”