Boeing Stock Falls, Airbus Rises Amid These Big Jet Orders From Paris Air Show
Boeing (BA) logged its first orders at the 2023 Paris Air Show Tuesday after archrival Airbus (EADSY) snatched a big win Monday. Boeing stock fell, while Airbus rose in a buy zone.
X
The aviation giants, as well as their jet engine suppliers General Electric (GE) and RTX (RTX), continue to highlight a strong demand outlook. But production and certification issues with key programs persist.
Meanwhile, India's in the spotlight at the air show, which concludes Sunday. Flag carrier Air India and its budget rival IndiGo are making headlines amid robust growth in that nation's air travel market.
Boeing, Airbus Report Orders
First up is Boeing. The Dow Jones aviation giant announced Tuesday that Air India has finalized a previously reported order for up to 290 new Boeing jets, including 737 Max jets and 787 Dreamliners.
Boeing also said China Airlines has firmed up orders for eight 787 Dreamliners, while Algeria-based Air Algerie has confirmed an order for eight Max 737 jets.
On Monday, Boeing's European rival Airbus announced an order for 500 A320 narrow-body jets from IndiGo, the largest plane deal ever. A Reuters report back in March said India's IndiGo was considering the Boeing 737 Max as an option after exclusively buying narrow-bodies from Airbus up to now.
Airbus followed up Tuesday with news that Air India has firmed up a prior order for 250 jets, including 210 A320/A321 narrowbodies and 40 A350 widebodies. The company also confirmed 25 A321 orders from ultra-low-cost Mexican airline Volaris.
Commercial aviation continues to gain pace after the severe pandemic hit to air travel. Boeing's new 2023 Commercial Market Outlook, released Sunday, estimates that global airlines will require 42,595 new jets through 2042 — 1,425 more than it had predicted last year.
Boeing Stock
Boeing stock lost 3.4% to 212.58 on the stock market today. BA stock briefly topped a 221.33 buy point from a flat base last week but has struggled to progress.
Airbus shares rose 0.5% to 36.01 Tuesday. EADSY stock cleared a 34.85 buy point from a double-bottom base last week.
Supply Challenges Persist
Plane-makers are racing to increase production to meet strong demand from airline customers. But production woes persist, including for Boeing and Airbus top sellers — the 737 Max and A320neo, respectively, both narrow-body jets.
Suppliers GE and RTX are working to fix durability problems with their respective Leap and GTF engines for those jets.
At its investor day Tuesday during the air show, GE outlined improvements on the Leap issue. The company maintained its 2023 guidance, saying the aviation outlook remains solid.
RTX expects a $500 million hit to free cash flow due to the GTF issue, the company said at an investor day Monday. It also announced a rebranding from its former name, Raytheon Technologies.
GE stock fell 1.9% to 104.26 Tuesday after hitting a five-year high intraday Friday. RTX stock edged up 0.3%.
Spirit AeroSystems (SPR), which makes fuselages for the Boeing 737 Max, tumbled 5%.
YOU MAY ALSO LIKE:
These Are The 5 Best Stocks To Buy And Watch Now
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith
Source: Investor's Business Daily
