Boeing to sell up to 50 airplanes to Korean Air, up to 20 planes to JAL

By Tomi Kilgore

Korean Air's commitments include 20 777-9, 20 787-10 planes, and options to buy 10 more 787 Dreamliners

Shares of Boeing Co. gained ground premarket Monday, after the aerospace giant announced a commitment from Korean Air to buy up to 50 widebody airplanes.

Separately, Boeing said it reached agreement with Japan Airlines on up to 20 more 787 Dreamliners.

The announcements were made at the Farnborough International Air Show in the United Kingdom. Boeing had indicated that it was taking a lower profile at the show, as the company remained focused on satisfying U.S. regulators' concerns, the Associated Press reported.

Boeing's stock (BA) slipped 0.6% in afternoon trading. While it has gained 4.8% over the past three months, it has tumbled 31.5% year to date, while the Dow Jones Industrial Average DJIA has tacked on 7.1%.

The purchase commitments from Korean Air include 20 777-9 aircraft and 20 787-10 aircraft, and options to buy 10 more of the largest 787 Dreamliner model.

Financial terms of the commitments were not disclosed.

"The addition of the Boeing 777-9 and 787-10 aircraft marks a significant milestone in our strategic objective to expand and upgrade our fleet," said Korean Air Chief Executive Walter Cho. "This investment underscores our commitment to providing a best-in-class flying experience."

Meanwhile the agreement with Japan Airlines includes 10 787-9 aircraft, with options to buy 10 more.

"We greatly appreciate the strong relationship and support from Boeing, which has been instrumental in our efforts to modernize our fleet and expand our international routes," said Yukio Nakagawa, JAL's executive officer of procurement.

Through the first six months of 2024, Boeing had booked orders of 156 airplanes - less than half the 366 orders booked in the first half of 2023.

Orders this year included 101 737 MAX aircraft, 42 777 aircraft and 13 787 aircraft.

For deliveries, Boeing reported a year-over-year drop of 32% for the second quarter, but they marked an 11% increase from the first quarter.

-Tomi Kilgore

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07-22-24 1344ET

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