Boeing wins record 103-jet Korean Air order as production concerns pressure shares

  • Boeing CEO Kelly Ortberg said 737 MAX production stabilization was taking longer than expected.
  • 103 Korean Air aircraft were finalized in a deal valued at approximately $36.2 billion.
  • FAA approval enabled 35 additional 777F freighter deliveries beyond 2028.

Boeing shares fell 2.4% to about $197 as CEO Kelly Ortberg said stabilizing 737 MAX production at 47 aircraft a month was taking longer than expected. Trading volume reached 11.7 million shares by midday, 77% above typical levels. Wing-production bottlenecks at Boeing's Renton, Washington, facility, engine delivery delays and unresolved certification issues are slowing the ramp-up, putting pressure on delivery-based cash generation and the company's $10 billion cash-flow goal. Investor disappointment was compounded when an anticipated Chinese order for about 200 aircraft failed to materialize. Boeing secured a major counterweight through Korean Air's finalized order for 103 aircraft valued at about $36.2 billion at list prices, while the FAA approved an emissions exemption covering 35 additional 777F freighter deliveries beyond 2028. Lufthansa reportedly committed to 20 more 737 MAX 10s. Analysts retain a Moderate Buy consensus and an average price target of $272.58, although Bank of America called the selloff excessive and warned of a possible SPEEA engineering-union strike whose contract expires October 6. Boeing's elevated leverage, weak quick ratio, recent earnings miss and trading below its 50-day and 200-day moving averages underscore the continuing financial and operational pressure.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.