Boeing stock back at 2001 levels after jet orders
SAN FRANCISCO (XFNews) - Boeing Co. shares on Monday rallied to their highest level since May 2001 after the company boosted an already strong 2005 order book with more than $13 billion in jetliner deals at the Dubai Air Show.
The first planes are set for delivery in 2007, according to the companies, and will be used to fly direct routes to European and Asian destinations as well as the U.S.
The deal could make this year the strongest yet for 777 orders, according to Banc of America Securities.
With International Lease Finance Corp.'s deal for 20 Boeing 787 Dreamliner twin-aisle jets, Boeing scored a big win. The order is a major purchase of Boeing's next new plane by one of the world's largest aircraft-leasing companies. Delivery should start in 2010.
Another leasing firm, Low Cost Aircraft Leasing, will buy six 787 Dreamliners in a deal worth about $780 million at list prices. Delivery is set to begin late in 2009.
Shares of Boeing , part of the Dow Jones Industrial Average, traded as high as $69.48 on an intraday basis, the highest level since May 17, 2001. The stock closed up $2.05 to $69.
In Asia, China Aviation Supplies Import & Export Group Corporation announced it will buy 70 of Boeing's 737 single-aisle jets, according to Chinese news agency Xinhua. The announcement was made in conjunction with a visit by President Bush to China.
"The Emirates order is somewhat larger than we had expected. The Chinese order a bit smaller," wrote Jefferies & Co. analysts in a Monday note.
The deals come as Boeing's order book this year is at its strongest in 17 years, reflecting how demand from foreign airlines continues to climb.
Boeing archrival Airbus, meanwhile, announced orders for 30 A320s from India's Kingfisher Airlines, while TAP Portugal plans to buy 17 planes, including 10 of the new A350s. Kuwaiti carriers Jazeera Airways and Alafco, as well as Mideast executive airline National Air Services also signed deals for new planes.