Updated at 7:55 am EST
boeing (licensed in letters) – Get a free report Shares rose in early trading Tuesday after the planemaker scored a major win over European rival Airbus with an order for the 737 Max from Germany's Lufthansa.
The deal marks the aerospace giant's first sale to the airline in nearly three decades.
Lufthansa, Europe's largest airline, will buy 40 737 Max aircraft from Boeing, with the option to increase the total order to 60, the group's first purchase of single-aisle aircraft from Boeing since 1995.
New 737-8 Max aircraft reduces CO2 its emissions by 20% and has half the noise footprint of previous generation aircraft, Lufthansa said, which will allow it to “modernize our short and medium-haul fleet and achieve our CO2 reduction targets.”
The group also purchased 40 Airbus A220-300s, with options for a further 60 aircraft, to be delivered between 2026 and 2032. The total value of the order is estimated at $9 billion at current list prices.
“Our relationship with Lufthansa Group has led to a number of industry-changing achievements, and we are delighted to see the 737 return to the fleet of an original launch customer,” said Boeing Commercial Aircraft President Stan Deal.
“The Lufthansa Group has set bold goals to decarbonize its operations,” he added. “The 737-8 will help the Lufthansa Group meet those sustainability goals with significant improvements in fuel use, emissions and noise impact on the community, while reducing costs for the airline.”
Boeing shares rose 1% in premarket trading following news of the deal with Lufthansa to indicate an opening price of $2,632.75 each, a move that would extend the stock's six-month gain to around of 24%.
The agreement with Lufthansa follows the agreement with Emirates Air
Last month at the Dubai Airshow, Boeing landed a $52 billion order for its widebody 777-X from Emirates Airlines. The airline also committed to purchasing five more 787 Dreamliner aircraft from Boeing.
Boeing ended the third quarter with 252 of its 737 Max in inventory, Boeing Chief Executive Dave Calhoun said, 85 of which were destined for customers based in China.
Boeing's order book increased by 224 aircraft, with only 10 cancellations, during the third quarter. Sales included 150 737 Max aircraft to European discount airline Ryanair as part of a $40 billion commitment announced earlier this year; and 50 787 Dreamliners to United Airlines amid a massive bet on the strength of the post-pandemic rebound in global travel.
The group's total order book now stands at 5,172 aircraft, the highest since December 2019, valued at around $58 billion.
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