Boeing (BA) confirmed a deal with investment firm 777 Partners, which will buy 24 737 Max jets with options for another 60 aircraft. Boeing stock jumped.
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While the deal was officially announced Friday, Canada’s budget carrier Flair Airlines first reported the agreement back in January when it announced a deal to lease 13 Boeing 737 Max jets from the investment firm.
“Flair will lease the initial 13 aircraft from one of its significant financiers, 777 Partners, who recently entered into an agreement with Boeing for 24 new Boeing 737-8 aircraft along with options to purchase another 60 737-8 aircraft,” the Jan. 27 statement read.
Boeing did not return requests for clarification on the deal.
777 Partners owns a stake in Flair and plans to lease the 737 Max planes to Flair and other affiliated carriers.
“The retrenchment of traditional carriers globally has created an unprecedented market opportunity for more agile and cost-efficient operators,” said Joshua Wander, founder and managing partner of 777 Partners, in the release Friday. “These aircraft will enable our operators to accelerate the recovery in the destinations they serve.”
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Boeing Stock
Shares surged 6% to 267.50 on the stock market today, hitting the highest level in a year and nearing recouping all its pandemic losses. Boeing stock broke out of a cup base with a 244.18 buy point on March 10, according to MarketSmith analysis. The buy zone extends to 256.39, meaning Boeing stock is already extended.
Shares of 737 Max supplier Spirit AeroSystems (SPR) rallied 2.2%, and engine supplier General Electric (GE) climbed 1.7%.
With the 737 Max back in service and deliveries resuming, orders have been rolling in as well, helping Boeing stock rebound.
Its February report showed more orders than cancellations for the first time since 2019, when the 737 Max was grounded following two fatal crashes. That data also noted Boeing secured an order for 14 737 Max planes for an unidentified customer last month.
Earlier this month, United Airlines (UAL) announced plans to buy 25 more Boeing 737 Max jets, to bring its total Max order to 180. The carrier also plans to have 45 737 Max aircraft deliveries moved up.
Ireland’s Ryanair (RYAAY) and Alaska Airlines (ALK) have also announced big 737 Max orders in recent months.
Plus, Southwest (LUV) is reportedly close to a deal with Boeing for a potentially huge 737 Max order.
Follow Gillian Rich on Twitter for aviation news and more.
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