Boeing, Airbus Rise on Potential Saudi Jet Order

Saudia Explores Major Aircraft Purchase

Shares of Boeing Co. and Airbus SE saw a modest increase following reports that Saudi Arabia's national airline, Saudia, is in preliminary discussions for a significant aircraft order. The potential purchase involves at least 150 narrowbody and widebody jets, which could be the carrier's largest-ever acquisition.

Market Situation Overview

According to reports, the discussions are in an early stage, with specific models and quantities yet to be decided. This potential order aims to both modernize and expand Saudia's current fleet of approximately 200 aircraft. This move follows other recent large purchases, including 105 Airbus narrowbody jets earlier in 2024 and over three dozen Boeing 787 Dreamliners in 2023.

Impact on Manufacturer Stocks

Despite a general market downturn, both Boeing and Airbus stocks gained approximately 0.5% after the news surfaced. This positive investor reaction highlights the financial importance of large-scale orders from Middle Eastern carriers for the world's leading aircraft manufacturers, suggesting a strong outlook for future revenue.

Summary

The potential deal underscores growing demand within the global aviation sector, particularly from the Middle East. While talks are preliminary, a finalized order of this magnitude would provide a major boost to either manufacturer. Observers will now watch for further details on model selections and delivery schedules.

FAQ

Q: How many aircraft is Saudia considering buying?
A: Saudia is reportedly in talks to acquire at least 150 narrowbody and widebody jets.

Q: How did Boeing and Airbus stocks react to the news?
A: Both companies' stocks rose by approximately 0.5% despite broader market declines.

Source: Investing.com