Boeing (BA) – Get a free report shares rose on Friday following a report suggesting United Airlines (LAU) – Get a free report is set to strike a deal for dozens of the planemaker’s troubled 787 Dreamliners.
The Wall Street Journal reported that United could confirm the purchase as early as this month, noting that the multi-billion dollar deal would mark a major victory for Boeing over European rival Airbus, just as it resumes deliveries of the flagship aircraft following a host of regulatory requirements. and manufacturing issues.
The Federal Aviation Administration gave Boeing the green light in August to resume 787 deliveries after halting them in May 2021 due to safety inspection concerns.
Boeing booked orders for 10 of its 787-9 Dreamliner variant planes in October, the planner said last month, with overall reservations for all its planes set at 122. October deliveries fell to 35 planes of the 51 reported in September.
Boeing shares rose 3.3% immediately after news of the potential deal and change of hands to $181.65 apiece, a move that would extend the stock’s six-month gain to around 29, 3%.
Boeing posted an adjusted loss of $6.18 per share in the three months ending October, a larger-than-expected tally that included a $2.8 billion charge related to its defense contracts with the Pentagon.
Free cash flow, however, comfortably exceeded Street’s forecast at $2.9 billion, with the group sticking to its full-year guidance of positive free cash flow fueled by stronger commercial deliveries.