Global aircraft manufacturer Boeing Inc. (BA) signed a Memorandum of Understanding (MOU) for five 777-8 Freighters with Africa’s largest carrier, Ethiopian Airlines.
Ethiopian is a global cargo carrier with its hub in Addis Ababa, and wants to expand their logistics cargo fleet. It connects Africa to more than 40 cargo centers across Asia, Europe, the Middle East, and the Americas.
Boeing’s new 777-8 Freighters boast of massive payload capacity and are 30% better in fuel efficiency, emissions, and costs, ensuring a sustainable and profitable business for operators. Launched in January 2022, Boeing already has 34 confirmed orders for the new freighter.
Boeing and Ethiopian have been in a long-standing relationship, with the former being a consistent supplier of various aircraft for the latter’s fleet. Ethiopian Airlines currently has nine 777 Freighters, three 737-800 Boeing Converted Freighters, and a combined commercial fleet of more than 80 Boeing jets including 737s, 767s, 787s, and 777s.
Meanwhile, continuing with its downward spiral amid the ongoing war between Russia and Ukraine, Boeing stock closed down 4.2% at $180.84 on March 4. Its shares have lost 13% year-to-date.
On the occasion, Ethiopian Airlines’ Group CEO, Tewolde Gebremariam, said, “Consistent with our history of aviation technology leadership in Africa, we are pleased to sign this MoU with our longstanding partner Boeing, which will make us join select group of launch customer airlines for the fleet. In our vision 2035, we are planning to expand our Cargo and Logistics business to be one of the largest global multimodal logistics provider in all continents. To this effect we are increasing our dedicated freighter fleet with the latest technology, fuel-efficient, and environment-friendly airplanes of the 21st century. We have also started the construction of the largest E-commerce Hub Terminal in Africa.”
The BA stock has a Moderate Buy consensus rating based on 12 Buys and 5 Holds. The Boeing stock prediction of $258.75 implies 43% upside potential to current levels.
TipRanks data shows that financial blogger opinions are 77% Bullish on BA, compared to a sector average of 68%.
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