Boeing Shares Rise as CEO Confirms China Deliveries to Resume Next Month

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Samiat

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Nov 12, 2024
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Boeing Shares Rise as CEO Confirms China Deliveries to Resume Next Month

Key Highlights:


  • Boeing CEO Kelly Ortberg confirms aircraft deliveries to China will resume next month.
  • China recently lifted a ban that prevented its airlines from receiving Boeing planes.
  • Boeing aims to increase 737 Max production, pending FAA approval.
Boeing (BA) stock rose over 3% on Thursday after CEO Kelly Ortberg announced that aircraft deliveries to China are set to resume in June. Speaking at the Bernstein Strategic Decisions Conference, Ortberg noted that Chinese airlines have expressed readiness to accept new aircraft, with the first deliveries expected next month. This follows China’s recent reversal of a ban that had previously restricted such deliveries.

Ortberg also addressed the company’s ongoing challenges with tariffs, stating that Boeing currently pays duties on components imported from countries like Italy and Japan. However, these costs are typically recovered once the completed aircraft are exported.

Looking ahead, Boeing plans to ramp up production of its 737 Max jets—targeting 42 units per month in the near term and 47 by year-end. These increases will require approval from the Federal Aviation Administration (FAA), which had previously limited production to 38 jets per month due to safety concerns following an in-flight incident involving a detached door plug.

Year-to-date, Boeing shares have gained 17%, reflecting renewed investor optimism amid signs of recovery in international operations.