The planemaker has benefited from President Donald Trump’s trade policies, as several countries have looked to purchase aircraft to cut their trade surplus with the U.S.
Boeing (BA) stock ticked up in after-hours trading on Monday after the planemaker got a large order of 103 jets from Korean Air, coinciding with the South Korean President Lee Jae Myung’s visit to the U.S.
The order will be the largest in the history of the Seoul-based carrier and will comprise 50 of its narrowbody 737-10 jets, 25 787-10s, 20 777-9s, and 8 777-8 freighters.
Korean Air will also buy 19 spare engines from GE Aerospace and CFM International, and has agreed to a 20-year engine maintenance program with GE. The cumulative investment from the airline will be $50 billion, with $36.2 billion allocated to aircraft purchase and more than $13 billion for the maintenance program.
“Acquiring these next-generation aircraft is the core of our fleet modernization strategy, delivering significant gains in fuel efficiency and enhancing the passenger experience across our global network,” Korean Air CEO Walter Cho said in a statement.
Retail sentiment on Stocktwits about Boeing was still in the ‘bearish’ territory at the time of writing.
Monday’s order adds to Boeing’s steep $619 billion backlog, underpinning the confidence of customers in the planemaker despite recent struggles. Boeing has also benefited this year from President Donald Trump’s trade policies, as several countries have sought to purchase aircraft to reduce their trade surplus with the United States.
The deal would also aid in Korean Air’s efforts to fully integrate Asiana Airlines, which it acquired recently.
“As Korean Air transitions to a larger unified carrier, we are committed to supporting the airline’s growth with one of the world’s most efficient fleets,” Stephanie Pope, president and CEO of Boeing Commercial Airplanes, said.
One Stocktwits user wrote that the U.S. Federal Aviation Administration should now lift the cap on 737 Max production, as orders continue to accumulate. “It’s only a matter of time and should happen before the year ends.”
Boeing stock has gained over 27% this year.
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