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Boeing stock rises following Pegasus Airlines' large order

Published 12/20/2024, 03:28 AM
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Investing.com -- Shares of The Boeing Company (NYSE:BA) climbed 3% today after Pegasus Airlines, Turkey's premier low-cost carrier, announced a significant order for Boeing's 737 MAX aircraft.

The deal includes a firm order for 100 of the 737 MAX 10 models, with options for an additional 100 planes. This order surpasses the size of Pegasus's existing fleet and signals confidence in Boeing's 737 MAX series.

The order is particularly noteworthy as it exceeds the current Pegasus fleet, which consists of 46 A320-200neos, 41 A321-200neos, 7 A320-200ceos, and 16 737-800s. The initial deliveries of the new aircraft are scheduled for 2028, aligning with Boeing's latest guidance for MAX 10 certification, expected in late 2025 to early 2026.

Jefferies analyst Sheila Kahyaoglu commented on the broader implications for Boeing's delivery schedule, stating, "We assume 45 MAX deliveries in Q4 (which could be a stretch, given a big Q4 ramp and 12 delivered in Oct/Nov) with 270 for 2024 and 384 in 2025 (assumes 29/mo production vs. 32/mo deliveries)."

This substantial order from Pegasus Airlines could reflect growing market confidence in the 737 MAX after its previous grounding and safety concerns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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