Boeing shares rose 5.2% on news that low-cost airline Ryanair has ordered 75 additional Boeing 737 Max jets with a list price of $9 billion, reports Reuters. The order from the Irish Airline is the largest for Boeing since 2018 before the aircraft maker was grounded following two fatal crashes involving the 737 Max jet.
- Ryanair’s orders are a pivotal moment for Boeing as it seeks to rehabilitate the Max grounded in March 2019 after crashes in Indonesia and Ethiopia.
- As regulators move to clear Boeing Max 737 after revisions to cockpit software and pilot training, airlines are eyeing discount deals even as they seek to recover from a crisis brought by the pandemic.
- Ryanair did not disclose the price it paid, but analysts say such deals include discounts of over 50% of list prices.
- Ryanair already has 135 of the 197-seat MAX 200 on order and expects to receive its first jet early next year and the final one by the end of 2024.
- The company is known for striking low-cost deals when its bargaining power is highest and said, on Thursday, it would pass low aircraft costs to lower fares.
- Boeing is also negotiating with airlines including Southwest and Delta and Alaska Airlines, which last month agreed to lease 13 Boeing MAX jets.
Boeing stock is currently gaining. BA: NYSE is up 6.19%