FARNBOROUGH, United Kingdom - In a significant fleet expansion, Japan Airlines (JAL) has entered into an agreement with Boeing (NYSE:BA) [NYSE:BA] for the acquisition of up to 20 additional 787 Dreamliner aircraft. The deal, announced today, consists of 10 firm orders for the 787-9 model, with options for 10 more. This move is set to bolster JAL's existing fleet of over 50 Dreamliners as the carrier seeks to enhance its international service.
JAL Executive Officer of Procurement, Yukio Nakagawa, emphasized the airline's focus on modernizing its fleet with more fuel-efficient aircraft, aiming to provide superior service while reducing carbon emissions. The agreement reinforces the airline's commitment to sustainability and the long-standing partnership with Boeing.
Upon finalization, this transaction will be reflected on Boeing's Orders & Deliveries website, indicating that JAL will have 10 787s and 21 737 MAX jets pending delivery. The versatility of the 787 has previously enabled JAL to launch new direct routes from Tokyo to various international destinations such as San Diego, Boston, and Bangalore.
The 787-9 variant, known for its long-range capability of up to 7,565 nautical miles, offers JAL the flexibility to continue expanding its network and to open new routes.
Boeing's senior vice president of Commercial Sales and Marketing, Brad McMullen, acknowledged the significance of the agreement, highlighting the 787-9's efficiency for JAL's key long-haul operations. He expressed appreciation for the enduring relationship with JAL, which has been a prominent advocate for the Dreamliner series.
The 787 Dreamliner family has been instrumental in introducing over 400 new nonstop routes globally since it commenced revenue service in 2011. With more than 1,900 orders from 87 customers, the aircraft series continues to be a popular choice, particularly among repeat customers like Japan Airlines.
Boeing, a leader in the aerospace industry, continues to focus on innovation, sustainability, and community impact through its products and services offered to clients across more than 150 countries. This agreement with JAL represents a continuation of Boeing's efforts to support airlines in their fleet modernization and expansion goals.
The information for this report is based on a press release statement from Boeing.
In other recent news, European carrier Luxair is expanding its fleet with an order for two Boeing 737-10 airplanes, as part of its sustainable growth strategy. Meanwhile, flydubai is facing significant delays in aircraft deliveries from Boeing, disrupting its fleet expansion efforts.
On the other hand, Korean Air is set to purchase approximately 20 Boeing 777X jets, marking a substantial commitment to Boeing's long-delayed aircraft program.
In the United States, Senator Jerry Moran is advocating for defense job security at Spirit AeroSystems (NYSE:SPR) amid Boeing's planned acquisition of the Kansas-based supplier. Concurrently, the United States Air Force's Next Generation Air Dominance (NGAD) program is undergoing a strategic reassessment and potential budget cuts.
These are recent developments within the aviation industry, highlighting the dynamic nature of the sector. The news underscores the ongoing challenges and opportunities faced by airlines and manufacturers alike, with a focus on fleet expansion, aircraft delivery delays, and strategic acquisitions. It is important to note that these developments are based on recent articles and analyst notes, providing insights into the current state of the aviation industry.
InvestingPro Insights
In light of Japan Airlines' recent deal with Boeing for additional 787 Dreamliners, it's pertinent to consider the financial health and market position of Boeing [NYSE:BA] as of the first quarter of 2024.
According to real-time data from InvestingPro, Boeing boasts a substantial market capitalization of $110.58 billion USD, reflecting its significant presence in the aerospace industry. Despite facing challenges, as evidenced by a negative P/E ratio of -50.58 and an adjusted P/E ratio for the last twelve months of -87.88, the company's revenue growth remains positive at 8.37% for the same period.
InvestingPro Tips highlight that Boeing is a prominent player in the Aerospace & Defense industry, which aligns with the company's strategic deal with JAL. However, the company is not without its struggles. Analysts have revised their earnings expectations downwards for the upcoming period, suggesting caution.
Moreover, Boeing's stock price has experienced considerable volatility, and analysts do not anticipate the company will be profitable this year. This is further underscored by the fact that Boeing has not been profitable over the last twelve months.
For investors and industry watchers considering Boeing's prospects, these insights could be crucial. The company's financial metrics and analyst expectations paint a picture of a key industry player facing short-term challenges but still managing to secure important deals such as the one with JAL.
For more detailed analysis and additional InvestingPro Tips, interested parties can visit https://www.investing.com/pro/BA. There are 5 more tips available on InvestingPro, which could offer deeper insights into Boeing's financials and market performance. To access these and other premium features, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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