Boeing recently announced further orders for its 787 Dreamliner jets from two major customers. Despite this news, the stock market remained largely unaffected, as investors have their concerns focused elsewhere.
Royal Brunei Airlines and Thai Airways Place New Orders
Royal Brunei Airlines has committed to purchasing four Boeing 787 Dreamliners, while Thai Airways has placed an order for an impressive 45 of these innovative aircraft.
Commitment to Environmental Sustainability
Thai Airways' CEO, Chai Eamsiri, emphasized the environmental benefits of the new Dreamliners, stating that they will be equipped with GEnx engines known for their advanced technology and reduced environmental impact. This move aligns with the company's goal to achieve carbon neutrality by 2050.
Dominance in the Market
The Boeing 787 Dreamliner has proven to be a popular choice due to its efficiency and performance, outshining its competitors in the wide-body, twin-aisle jet market. With approximately 800 unfilled orders and over 1,100 deliveries, Boeing has established itself as a key player in this segment. In comparison, the Airbus A350 has received fewer orders and deliveries, totaling around 1,200 jets.
Contrasting Trends in the Narrow-Body Jet Market
While Boeing enjoys success with its 787 Dreamliner, a different scenario unfolds in the narrow-body, single-aisle jet market. The Boeing 737 MAX series has seen around 1,400 deliveries and boasts an impressive backlog of 4,400 orders, bringing the total to 5,800 jets. In contrast, the Airbus A320neo family has garnered orders and deliveries totaling approximately 10,000 units.
January Deliveries Reflect Market Trends
The latest figures indicate a decline in Boeing's 737 MAX deliveries, with 25 units delivered in January compared to 44 in December and 35 in January of the previous year. This shift in delivery numbers sheds light on the dynamic nature of the aviation industry.
Boeing's Delivery Slowdown due to Emergency Door Plug Incident
The recent emergency door plug incident caused a temporary halt in deliveries for a month, after a door plug blew out of a 737 MAX 9 jet in flight on Jan. 5. This led to a temporary grounding of MAX 9 jets and increased regulatory oversight.
Chinese Airlines Receive January Deliveries
Despite the setback, three January deliveries went to Chinese airlines, marking a significant milestone. According to Jefferies analyst Sheila Kahyaoglu's recent report, China had not accepted a new MAX jet since the global grounding between March 2019 and November 2022, following two fatal crashes.
Outlook for 2024 and Inventory Status
Wall Street anticipates approximately 500 MAX jets to be delivered in 2024. Boeing is expected to produce around 430 jets, starting the year with roughly 140 MAX jets still in inventory due to the worldwide grounding.
Stock Performance and Market Outlook
Boeing's stock remained flat in premarket trading on Tuesday at $203.80 per share. S&P 500 and Dow Jones Industrial Average futures were down by about 0.4%.
As of Tuesday's trading session, Boeing's stock had declined by around 22% year-to-date and about 4% over the past 12 months. The recent MAX incidents have heavily impacted the company's shares.
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