Aerospace and defense company
Boeing
is rising early Monday after a report saying that a yearslong freeze on sales in China could soon be lifted.
The Chinese government is considering a commitment to buy Boeing (ticker: BA) 737 jetliners as President Joe Biden meets Xi Jinping in San Francisco this week, Bloomberg reported, citing unidentified people familiar with the plans. Boeing hasn’t made any significant sales of the 737 in China since 2018, when the model was grounded after two crashes.
Separately, Boeing announced Monday that Turkish German airline SunExpress will buy up to 90 of the 737 MAX Jets. According to a Reuters report, Emirates will order 90 777X jets.
The prospect of new 737 sales comes as Boeing shows off other models at the Dubai Air Show. It is showcasing the 777 and 787 family of fuel-efficient models, as well as jet fighters and Apache and Chinook helicopters for military use.
“With some of its biggest buyers, the U.K., U.S. and Europe, all expected to continue raising defense budgets over the coming years, the sky really is the limit for this jet-maker,” said Aarin Chiekrie, an analyst at Hargreaves Lansdown.
Shares were up 3.2% in premarket trading to $202.90. The stock has gained more than 13% this year, even though investors have generally been disappointed with the company’s earnings. Last month, Boeing reported a wider-than-expected loss for the third quarter.
Write to Brian Swint at [email protected]
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