Boeing sells 100 new 737 MAX-7 jetliners to Southwest Airlines
- Boeing sells 100 new 737 MAX-7 jetliners to Southwest Airlines.
- The U.S. aeroplane maker outperformed Airbus in 2021 to date.
- Boeing asks Delaware court to throw out investors’ 737 MAX lawsuit.
In an announcement on Monday, the Boeing Company (NYSE: BA) said it received an order for one hundred 737 MAX-7 jetliners from its long-term customer, Southwest Airlines. The aeroplane manufacturer noted that it was the largest order for 737 MAX since the U.S. Federal Aviation Administration cleared the aircraft for commercial flights late last year.
Boeing shares jumped roughly 3% in premarket trading on Monday but lost 1% in the later hours. Including the price action, the stock is now exchanging hands at £180.88 per share. In comparison, the Chicago-based aeroplane maker had started the year 2021 at a lower £147.23 per share. The price action should come in handy if you are interested in investing in the stock market.
Analyst Richard Aboulafia’s comments on the news
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Analyst Richard Aboulafia of Teal Group commented on the news on Monday and said:
“This is a very solid boost for the 737 MAX program, but since Boeing was the incumbent here, they had a strong advantage. In fact, since Southwest is the world’s only large 737-only airline, it would have been a major disaster for Boeing if they had lost.”
Also on Monday, Boeing asked the Delaware court to throw out investors’ 737 MAX lawsuit.
Southwest Airlines has been a loyal customer of Boeing’s older 737 planes that it has been flying for roughly five decades. The world’s largest low-cost air carrier said on Monday that it now has 349 orders for Boeing’s 737 MAX on its order book through 2031.
The ongoing Coronavirus pandemic that weighed on the demand for air travel wreaked havoc on Boeing’s finances last year, making it lose its title of the world’s largest aeroplane manufacturer to the European rival Airbus SE. Boeing was also pushed into cutting 737 MAX production after two fatal crashes; one in late 2018 and another in early 2019.
Boeing outperformed Airbus in 2021 to date
The American multinational corporation, however, outperformed Airbus in 2021 to date in terms of order wins. Including cancellations, its monthly orders turned positive in February for the first time since November 2019.
In late January 2021, Boeing had reported £6.15 billion of net loss in its fiscal fourth quarter due to the COVID-19 disruptions.
Boeing performed largely downbeat in the stock market last year with an annual decline of roughly 35%. At the time of writing, it is valued at £105.84 billion.