Boeing shares rose slightly on Monday as the company prepares for a busy week at the Farnborough Airshow, which starts this week near London. The event brings together aerospace leaders to share updates with investors and make deals.
Before the show, Bloomberg reported that the Federal Aviation Administration will let Boeing start certifying 737 and 787 planes from its assembly lines again. This process changed after the second 737 MAX crash in 2019. The move shows Boeing is making progress in regaining the FAA’s trust. Boeing said it will keep working under FAA supervision to build safe, high-quality planes that meet all certification standards.
Reuters also reported that Boeing’s new Air Force One program is still set for delivery in 2028, despite the company taking billions in charges due to higher costs. Boeing directed questions about Air Force One to the Air Force.
Neither of these updates is likely to move Boeing’s stock much by itself, and new aircraft orders at the airshow are not the main focus for investors. Boeing and Airbus together have about 15,000 jets waiting to be delivered, which is more than ten years of production at current rates. Boeing expects airlines will need 44,000 new jets over the next 20 years as global air travel doubles. The worldwide commercial fleet, now about 28,000 planes, could grow to 50,000 by 2046 after older planes are retired.
The main priority for both companies is increasing production, and updates on supply chain progress are likely to affect the stocks more than new orders. Still, Boeing has received new business recently. Riyadh Air, SMBC Aviation Capital, and Philippine Airlines have all placed new orders or turned existing options into firm commitments.
Boeing shares were up nearly 1% in premarket trading on Monday, while S&P 500 and Dow Jones futures also moved higher. The stock has been volatile this year, especially after oil prices jumped during the conflict in Iran. Boeing shares have fallen 6% since the war in Iran started, are slightly down for the year, and have dropped 7% over the past 12 months.
