Boeing Shares Surge On Orders From Major Middle Eastern Airlines: What You Need To Know

Boeing Company BA shares are trading higher by around 3% after it announced winning contracts from several Middle Eastern airlines Monday during the Dubai Airshow. 

The company penned two deals with UAE's major airline operators for its widebody jets.

Boeing won an order for 90 777X airplanes, including 55 777-9 and 35 777-8 jets, from Emirates.

The new order will increase Emirates' 777X family backlog to 205 planes.

The UAE's prominent airline operator is also buying five more 787 jets, boosting its 787 backlog to 35 while converting 30 787-9s to 20 787-8 and 10 787-10 airplanes.

Boeing has a strong relationship with Emirates, with its fleet having nearly 150 777 jets.

Also, flydubai ordered 30 787-9 Dreamliners from Boeing to diversify its fleet by introducing widebody jets.

flydubai airline operates an all-737 fleet of 79 airplanes with an order backlog of 137 737s.

In addition, Boeing won an order for four 787-9 Dreamliner jets from another Middle East Airline company, Royal Jordanian.

Boeing's 2023 Commercial Market Outlook projects widebody airplanes will comprise 45% of deliveries to Middle East airlines in the coming 20 years. 

Last week, Boeing said Southeast Asia's commercial airplane fleet will nearly quadruple to more than 4,000 jets by 2042, becoming one of the global leaders in air traffic and fleet growth. 

In October, Boeing reported third-quarter revenue of $18.10 billion, beating the consensus of $16.58 billion, and adjusted loss per share contracted to $(3.26) from $(6.18) in 3Q22, missing the consensus of $(2.96).

Price Action: BA shares are up by 3.42% at $203.38 premarket on the last check Monday.

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