Boeing deal for jets from Saudi Arabia may be bigger than previously thought

text size

on order speed

boeing

seems to be picking up. That’s good news for Boeing and good news for the commercial aerospace industry.

The Wall Street Journal reported that Two Saudi Arabian airlines were on the verge of buying 80 787 Dreamliner jets From Boeing. Over the weekend, the Journal reported that a new Saudi Arabian airline would buy Boeing jets in a $35 billion deal.

A single 787 jet costs over $338 million. An order for 80 could cost up to $27 billion, depending on list prices. Airline orders are usually reported at list prices, but airlines usually do not pay list prices. Actual prices paid are subject to negotiation and are a closely guarded secret.

The Journal’s latest report implies that Saudi Arabian Airlines may be buying more than just 787 jets. This makes some sense. Saudi Arabia’s new airline launch will likely debut with more than just large, twin-aisle jets.

Boeing declined to comment on weekend reports of the new order. Boeing did not immediately respond to a request for comment about the Journal’s report on Monday.

Eighty is a big order for a widebody jet.

United Airlines

(UAL) ordered 100 Dreamliners from Boeing in December. this was it Largest Widebody aircraft order ever placed by a US air carrier.

In January, Boeing took 55 orders for the new jet. January is the most recent month of order data. In January 2022, Boeing took orders for 77 jets. Boeing has taken 913 jet orders in the past 12 months.

Orders are outpacing deliveries, which means backlog is growing. This has brought some relief to investors that airlines are seeing an increase in demand for travel in the future.

Wall Street expects Boeing to deliver 580 jets in 2023, up from 480 in 2022. In 2018, before the pandemic and the worldwide grounding of the 737 MAX in March 2019, Boeing delivered 806 commercial jets.

Boeing has roughly 5,400 unfilled orders for the new jet, which is roughly in line with its official jet backlog of 4,600 units.

Boeing shares were up 0.4% in premarket trading.

S&P 500
And

Dow Jones Industrial Average
Futures both rose 0.4%.

Boeing stock and more significant changes to the market could come after the release of data on US consumer prices on Tuesday. Economists expect prices to rise by about 5% year-over-year in February. In January, prices rose by about 5.6% year-on-year.

Boeing shares rose 0.2% on Monday after the Journal’s initial report on Sunday. The S&P 500 dropped 0.2%. The Dow fell 0.3%. Markets continued to be volatile to deal with the recent failures of

SVB Financial

(SVB) and

signature bank

(SBNY).

Coming into Tuesday’s trading, Boeing shares are up about 7% this year and about 16% over the past 12 months.

Write to Al Root at [email protected]