Boeing (BA) shares jumped higher Tuesday after the planemaker confirmed a long-reported deal to sell nearly 300 jets to Air India, Asia's largest commercial carrier.
Boeing said the Air India, which also includes purchases from its European rival Airbus, will comprise of 190 737 Max Jets, with the option to purchase another 50, 20 787-9 Dreamliners with options for another 20 as well as 10 777X airplanes.
President Joe Biden called the sale an "historic agreement" and said the list price for the committed purchases was $34 billion and support more than a million American jobs over 44 states.
"Air India's selection of Boeing's family of passenger jets shows their confidence in our products and services in the world's fastest growing aviation market, and their decision will support engineering and manufacturing jobs at Boeing factories in Washington state, South Carolina and across our supply base," said Boeing Commercial CEO Stan Deal.
"With the industry-leading fuel efficiency of the 737 MAX, 787 Dreamliner and 777X, Air India is well positioned to achieve its expansion plans and become a world-class global airline with an Indian heart," he added.
Boeing shares were marked 0.55% higher in early Tuesday trading, against a 0.75% decline for the Dow Jones Industrial Average, following news of the Air India deal to change hands at $216.81 each. The stock hit a one-year high of 221.33 earlier in the session.
Late last month, Boeing repeated its forecast for operating cash flows of between $4.5 billion and $6.5 billion, with free cash flow of between $3 billion and $5 billion, following a surprise fourth quarter loss.
Boeing said its adjusted core loss for the three months ending in December was pegged at $1.75 per share even as revenues rose 35% from last year to $19.98 billion
Boeing delivered 480 planes last year, a 41% increase from 2021 levels, while winning orders for at least 774 new jets, a tally that still trails market-leader Airbus. Boeing's order backlog was pegged at 4,578 aircraft with a value of around $404 billion.
