Booming Air Traffic Revives Appetite for Jets
The restoring aviation industry has once again brought aircraft manufacturers brimming orders, including for long-haul jets of considerable size. Sprightly starting at the aviation fair in Dubai, Emirates, the renowned Arab airline, sealed a substantial deal with the esteemed US aircraft manufacturer, Boeing, ordering 95 wide-body jets.
In toto, Boeing publicly announced receiving orders for 176 passenger jets. The globe's colossal manufacturer, Airbus, received only one order – for 30 aircraft – but is in negotiations with Turkish Airlines to sign a deal for at least 240 aircraft.
Stock Market Contends with Orders
Boeing shares escalated more than 4% shortly upon US trading hours commencement, boosted by rumors of an impending meeting between US President Joe Biden and Chinese head of state Xi Jinping, which may pave the way for an extended export of Boeing's 737 Max medium-haul jet. Airbus shares also climbed slightly in the Frankfurt exchange, reaching an appreciation of nearly 2% temporarily, and then roasting at around 1% gains.
Emirates placed orders for 90 overhauled 777X wide-body jets, in addition to 5 787 “Dreamliner” aircraft during the Dubai aviation fair. The upswing for the 777X provided a ray of hope to the stranded US group. Emirates, in possession of more 777 aircraft than any other airline worldwide, has now ordered a cumulative total of 205 aircraft from this series. Regrettably, like other interested parties, its receipt of the revamped 777X has been delayed without a glimmer.
The delivery of the first aircraft has been rescheduled multiple times, as predicted not earlier than the second quarter of 2025. Boeing's commercial aircraft chief Stan Deal asserted that this schedule remains attainable. Lufthansa has prolongedly awaited its initial aircraft, with the delay having set the manufacturer back billions.
Boeing clinches agreements with Flydubai
Boeing struck a chord with Arab low-cost airline Flydubai during the fair, as they elected to procure 30 787-9 "Dreamliner" wide-body jets, marking their initial foray in this realm.
Unsecured Major Order from Turkish Airlines
No definitive agreement has surfaced for a major order from Turkish state airline for Airbus, despite both sides agreeing to a "significant aircraft order" in principle. Airbus emphasized the advocacy of a "significant aircraft order," without disclosing additional details, supposed to be officially announced in the imminent future. According to Turkish Airlines, the arrangement involves the procurement of 355 Airbus aircraft, 240 of which are firm orders and 115 consisting of options.
Boeing and Airbus close in on major carriers
Emirates' decision to order 95 wide-body jets from Boeing, such as 90 modernized 777X and 5 787 "Dreamliner" aircraft, represents a significant win for the US aircraft manufacturer. Houstedly, Turkish Airlines is contemplating an extensive agreement with Airbus for at least 240 aircraft, indicative of both Airbus and Boeing clinching major deals with influential airlines, like Emirates and Turkish Airlines.
Brief Insights:
Boeing's Expanding Horizons - Delays in the delivery of the 777X have upset Emirates' fleet strategy and operational planning, necessitating costly corrections, like protracting the lifespan of its existing aircraft through costly retrofits and revising its route network due to a scarcity of fresh capacity.
Turkish Airlines' Widebody Fleet Operations - Turkish Airlines has outlined several widebody flights to and from Russia, with an emphasis on Vnukovo International Airport (VKO) in Moscow, primarily using Airbus A330-200 and A330-300 aircraft. - Between January and November 2025, Turkish Airlines has scheduled 4,090 flights utilizing widebody jets, totaling 15,571,004 seats.
Investment Prospects - Grounded on extensive research, analysts predict Boeing shares to fetch modestly triumphant gains in 2025, ascertaining a potential rise to $212.23 per share by February 2025, reflecting raised optimism for future income growth. - By 2025, Boeing's recovery might become more evident, with a projective stock price of $170.48, translating to a 9.34% increase from its present value. - Airbus shares have experienced modest growth in 2024, with their stock value appreciating nearly 8%. - Airbus procured 878 gross orders in 2024, exceeding Boeing's 569 gross orders, reflecting robust demand for Airbus's commercial aircraft and the prospect of a positive impact on its stock performance. - A more detailed examination of Turkish Airlines' major order with Airbus is not available in the provided sources.
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