Lufthansa to buy Boeing 737 for the first time since 1995

By:
on Dec 19, 2023
Listen
  • Lufthansa ordered 40 of Boeing's 737-8 Max on Tuesday.
  • The German airline also placed a similar order with Airbus.
  • Boeing stock is now up 50% versus its low in late October.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Boeing Co (NYSE: BA) is up 2.0% today after Lufthansa placed an order for 40 of its 737-8 MAX.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Lufthansa buys 40 of Boeing’s 737 Max

Copy link to section

The German flagship air carrier also has an option to buy another 60 of those planes from Boeing in the future.

It’s the first time that Lufthansa has purchased the 737 since 1995. Carsten Spohr – its Chairman of the Executive Board said in a press release today:

It’s a good strategic decision. With the new, quiet, economical and efficient 737-8, we’re making progress in modernising our fleet and in achieving our CO2 reduction targets.

The news arrives only days after Boeing received a similar order from Avolon – an Irish aircraft leasing company as Invezz reported here. Its shares are now up a whopping 50% since late October.

Lufthansa also placed an order with Airbus

Copy link to section

On Tuesday, Deutsche Lufthansa AG (EPA: AIR) placed an order for 40 of A220-300s – a narrow-body jetliner of rival Airbus SE as well.

In total, the Europe’s largest airline expects to spend $9.0 billion on the purchase it announced today. Lufthansa will start taking deliveries from 2026, as per its press release this morning.

Last month, the air carrier reported €1.47 billion ($1.61 billion) in adjusted EBIT for Q3 – the third best it has recorded for a quarter in its history.

Lufthansa also reiterated its profit guidance for the coming year in November. Wall Street currently has a consensus “overweight” rating on shares of the Cologne-headquartered firm.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Boeing Company USA Europe Manufacturing North America Stock Market Transport & tourism World