Boeing’s Stock Bounces Back with 150-Jet Order from Indian Airline

Boeing experiences a stock upswing as Akasa Air, an Indian-based airline, places an order for 150 Boeing 737 Max airplanes. The order, unveiled at the Wings India 2024 airshow, includes a mix of 737-10s and additional 737-8-200 planes. These new variants aim to enhance Akasa’s operational capabilities, extending capacity and range for both current and new routes. Boeing emphasizes the positive environmental impact, highlighting reduced fuel consumption and carbon emissions. While financial details remain undisclosed, the order marks a significant development for Akasa, bringing its total Boeing order book to 226 jets.

The announcement at the Wings India 2024 airshow solidifies Akasa’s commitment to expanding its domestic and international network. Despite holding 4% of India’s domestic market and serving 18 destinations with a current fleet of 22 737 Max jets, this order signals Akasa’s ambitions for further growth.

Amidst safety concerns following a fuselage panel blowout on a 737 Max 9 jet, Boeing faces heightened scrutiny. The incident led to the FAA grounding 171 737 Max 9 model aircraft in the U.S. for inspections. Despite these challenges, Akasa Air’s order provides Boeing with a much-needed boost. It’s noteworthy that the carrier doesn’t operate any 737 Max 9 planes, potentially mitigating concerns raised by the recent incident.

Boeing’s stock rebound comes after facing scrutiny and downgrades from Wells Fargo earlier in the week. The FAA inspection audit and increased safety inspections by Chinese authorities have posed challenges for the aerospace giant. Despite the recent setbacks, Boeing’s stock surged by 4.2% on Thursday, helping recover from earlier losses during the week.