Boeing Stocks Climb with New Orders
Boeing’s stock saw an increase on Tuesday, sparked by a recent order for key aircraft from Uzbekistan. This development has fueled hopes of securing a significant deal with China.
David Purdue, the U.S. ambassador to China, suggested that negotiations involving Boeing and China are likely nearing completion within days or weeks. He emphasized, “This is a big order, it’s very important to the president and very important to Boeing,” during a visit to China with a group of lawmakers. However, he refrained from sharing specifics about the anticipated deal.
Purdue’s remarks followed Boeing’s announcement that Uzbekistan Airlines would be acquiring 22 of its 787 Dreamliners. Additionally, flagship airlines from Central Asia are expected to secure options for 14 widebody aircraft, further adding to their existing orders.
Boeing stated that this purchase would enable airlines to expand their international routes, including those to the U.S., while also supporting nearly 35,000 jobs within the United States.
As for the stock, it rose by 2% on Tuesday, marking a notable gain of 22.2% overall this year.
In a social media post on Monday, President Trump inaccurately mentioned that the value of the Uzbekistan Airlines contract exceeded $8 billion and mistakenly claimed it involved 22,787 planes.
Boeing chose not to comment on Trump’s assertions, directing inquiries to the White House, which did not respond to repeated requests for clarification.
On another note, any potential sales to China would represent Boeing’s first major agreement with the country in several years. Although planes were still delivered to China, business plummeted in 2019 following issues related to the 737 Max, which was involved in two crashes resulting in a tragic loss of 346 lives.
Adam Smith, a prominent Democrat on the House Armed Services Committee, remarked on the long gap since Boeing planes were last sold in China, expressing a desire to finalize any potential deals.
Boeing remains tight-lipped about any possible orders from Chinese customers amid attempts to rehabilitate its reputation following a tumultuous 2024. This included incidents like a door plug malfunction during takeoff from Portland, Oregon, involving a 737 Max.
Additionally, in July, federal prosecutors revived criminal fraud charges related to the deadly crashes of the 737 Max in 2018 and 2019. Compounding these challenges, a recent nearly eight-week strike by mechanics, including those involved with the 737 and two other Boeing models, halted production and negatively impacted the company’s finances.
