Boeing Receives Another Big Order From Avolon
Image Source: Unsplash
Boeing Co (NYSE: BA) says it has received another big order from Avolon – an Irish aircraft leasing company. Its shares are up nearly 1.0% at writing.
How many planes did Avolon buy?
On Tuesday, Avolon placed an order for 40 of the multinational’s 737-8 Max planes.
The aerospace giant had received a similar-sized order from the lessor in June as well. According to Andy Cronin – the Chief Executive of Avolon:
We have committed to … transformation of our fleet to lower emissions airplanes. Today’s orders strengthen our delivery pipeline and reflect our confidence in long-term outlook for aviation.
The news arrives more than a month after Boeing Co reported a wider-than-expected loss for its third financial quarter (read more). Shares of the Arlington-headquartered firm are still up 40% since then.
Boeing stock initiated at ‘outperform’
Bohai Leasing Co Ltd – a Chinese firm that has a 70% stake in Avolon valued the Boeing transaction at $4.9 billion based on the list prices.
Avolon expects the new aircrafts to be delivered by 2032. Note that the aircraft leasing company also placed an order with rival Airbus this morning for 100 of its A321 neo planes.
Also on Tuesday, William Blair analyst Louie DiPalma assumed coverage of Boeing stock with an “outperform” rating. He sees “elevated aftermarket demand” as a positive for the New York-listed firm but told clients in a research note that it will see “real upside from higher production rates”.
Boeing Co booked a net of 104 orders in November.
In November, Boeing got back on an upward trajectory.
— Dominic Gates (@dominicgates) December 12, 2023
It delivered 56 commercial airplanes, including 45 MAXs, last month.
That compares to 18 MAXs in October and just 15 MAXs in September. https://t.co/7ekcLqis53
More By This Author:
UK’s Wage Growth Slows, Job Vacancies Drop: Report
IPOs In 2024 Could Bring Over $100 Billion To Stock Markets – But Which Ones Will Win The Race?
Oracle Q2 Earnings: ‘Not Immune To Macro Backdrop’
Disclaimer: Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always ...
more