Boeing Company BA shares are trading higher premarket Thursday. The company disclosed that EL AL Israel Airlines has finalized a deal for up to 31 737 MAX jets.
El Al Israel Airlines inked a deal valued at up to $2.5 billion, reported Reuters.
The Israeli flag carrier is supporting its fleet renewal plans for Next-Generation 737 aircraft.
The 737 MAX family will enable EL AL to achieve the best per-seat economics in its class, enhance environmental performance, and improve passenger comfort.
Specifically, the 737 MAX will reduce fuel consumption and emissions by 20% compared to the planes it replaces and have a 50% smaller noise footprint.
EL AL’s 737 MAX order comes after its earlier purchase of three additional 787-9 airplanes, with options for six more, as it continues to expand its 787 Dreamliner fleet.
The airline will receive a new 787-9 this year and plans to take delivery of two more leased 787-9s in the coming years.
Stephanie Pope, president and CEO of Boeing Commercial Airplanes, said, “We know EL AL depends on the versatility and reliability of Boeing airplanes, and we look forward to delivering the 737 MAX and 787 Dreamliner jets that will reshape and grow the airline in the coming decades.”
Read: Moody’s, S&P Cast Doubt on Boeing’s 737 MAX Target: Report
Dina Ben-Tal Ganancia, CEO of EL AL Israel Airlines, said, “EL AL has a central role in ensuring open skies for Israel. The implementation of our strategic plan – which aims to expand the fleet, increase the value proposition for customers and increase capacity and seating – will ensure a strong and growing company for many years to come.”
Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ITA and Gabelli Commercial Aerospace and Defense ETF GCAD.
Also Read: NTSB Calls Out Boeing For Safety Lapses: FAA Steps Up Scrutiny
Price Action: BA shares are up 0.36% at $168.30 premarket at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
