Boeing (NYSE: BA) shares jumped about 7% in regular trading on Wednesday, leading the S&P 500 gainers. The rally followed an announcement from Japan Airlines, which placed an order for 17 new Boeing 737-8 aircraft, boosting investor confidence in the aerospace company.
Japan Airlines is expanding its fleet with this new order, adding to a previous commitment made in March 2023 for 21 Boeing 737-8 planes. The airline also plans to phase out its older Boeing 767 aircraft, replacing them with 11 planes from Airbus. In total, the 38 Boeing 737-8 aircraft are expected to be delivered in fiscal 2026, with additional deliveries from Boeing and Airbus scheduled for fiscal 2027 and 2028.
In a separate development, Bank of America analysts highlighted a positive outlook for Boeing’s deliveries. They referenced a prediction from Aero Analysis Partners, a research firm, suggesting that Boeing’s March deliveries will exceed those of the previous month, and may even match or surpass the 40 planes delivered in January. Bank of America maintained its neutral rating on Boeing stock and set a price target of $185.
CFO Says No ‘Near Term Impact’ From Tariffs
Also on Wednesday, Boeing (NYSE: BA) CFO Brian West spoke at an industry conference about the company’s outlook. He addressed concerns over the Trump administration’s tariffs on goods like aluminum and steel, stating that Boeing does not expect a “material near-term impact.” West explained that the company’s supply chain is primarily based in the U.S., which helps limit the effects of the tariffs. He added that first-quarter results appear to be in line with expectations, according to a transcript from AlphaSense.
“We’re seeing less working capital drag,” West said when asked about the first quarter. “So, that could be better when we close the quarter and it could be in the hundreds of millions of cash flow better.”
