Aerospace major Boeing (NYSE:BA) has bagged an order for up to 100 737 MAX jets from Lufthansa (DE:LHAB), the largest airline group in Europe. The deal includes a firm order for 40 planes along with 60 options.
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Importantly, this marks the return of Boeing’s 737 planes into Lufthansa’s fleet after a gap of nearly 30 years. Boeing’s last 737-330 jet delivery to the airline was in 1995. Interestingly, Lufthansa was the co-developer and launch customer of the model nearly 60 years ago.
The 737-8 planes are known for their quiet and economical profile. This order is expected to help Lufthansa modernize its short and medium-haul fleet while progressing towards its emission reduction goals. The 737 MAX lowers carbon dioxide emissions by 20% and offers a 50% smaller noise footprint than previous generation jets.
Lufthansa has banked on wide-body planes to replace its fleet. The present order backlog from the airline includes orders for 34 787 Dreamliners, seven 777-8 Freighters, and 20 777-9 planes.
Boeing has been scoring major order wins recently. This month, the company bagged orders for 40 737-8 jets from Avolon and 16 maritime patrol planes from the Canadian military. Further, Virgin Australia has expanded its order for 737 Max-8s to 14.
What is the Future of BA Stock?
Overall, the Street has a Strong Buy consensus rating on Boeing. Following a mega 40% rally in the company’s share price over the past year, the average BA price target of $265.05 points to a modest 1.8% potential upside in the stock.
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