Boeing(BA) shares moved higher after the planemaker secured an order for single-aisle planes from Germany’s Deutsche Lufthansa AG.
Lufthansa ordered 80 planes from Boeing and Airbus and agreed to future purchasing options for a total value of $9 billion. The deal states that 40 Boeing 737 MAX 8 Planes and 40 Airbus A220-300s are to be delivered between 2026-2032. It also includes 60 future purchasing options for the MAX 8, 20 options for the A220, and 40 options for the A320s.
The German airline company Lufthansa was an original launch customer for Boeing 737s in 1967, however, its last purchase was in 1995 as the carrier moved to an all-Airbus-single-aisle fleet.
Stan Deal, president and CEO of Boeing, said the new planes will give Lufthansa significant improvements in fuel use, emissions, and community noise impact while reducing costs.
While Lufthansa has continued to buy Boeing’s wide-body planes, this order is Lufthansa’s first buy of narrow-body planes in nearly 30 years, and also its first purchase of the 737 MAX model.
Lufthansa CEO Carsten Spohr said, “It is a good strategic decision for the Lufthansa Group to order Boeing 737 aircraft again for the first time since 1995.” He added, that the MAX 8 would help the company meet the carbon reduction requirements.
Spohr also reinforced Lufthansa’s relationship with Airbus as the planemaker’s largest airline customer.
Boeing shares gained 1.2% on Tuesday and were trading at the highest level since March 2021. Meanwhile, Airbus was up 0.6%.
Key Takeaways
- Boeing(BA) said Lufthansa would buy single-aisle aircraft from the planemaker for the first time in nearly 30 years.
- Lufthansa has placed an order of 40 737 MAX jets, with future options to buy 60 more.
- Lufthansa said that adding the 737 MAX would help modernize its fleet and also help in reducing carbon emissions.
- Boing shares gained 1.2% on Tuesday, while Airbus was up 0.6%
