By Samiat May, 15, 2025 Business
Boeing Shares Climb 2% on $96 Billion Qatar Airways Deal Amid Positive Global DevelopmentsKey Highlights:
Boeing (BA) shares surged by 2% on Wednesday to close at $209.66, after the White House announced a $96 billion deal involving Boeing and GE Aerospace to deliver 210 aircraft to Qatar Airways. This marks one of the largest commercial aviation deals in history.
The deal was unveiled during a high-level state visit by U.S. President Donald Trump to Qatar’s Emir, Tamim bin Hamad Al Thani. According to the White House, the agreement includes Boeing 787 Dreamliners and 777x jets powered by GE Aerospace engines. It’s being hailed as the largest-ever widebody aircraft order and the biggest order for Boeing’s 787s to date.
Future Options and Broader Agreements
Bloomberg reported that Qatar Airways has the option to purchase 50 additional aircraft of either model. The airline, which currently operates a fleet of 233 aircraft, continues to aggressively expand its global reach.
The Qatar Airways deal forms part of a broader economic partnership, with the U.S. and Qatar signing over $243.5 billion in trade agreements during the state visit.
Other Major Wins and Trade Deals
This isn’t Boeing’s only recent success. On May 9, the company finalized a $13 billion deal with International Airlines Group (IAG), parent company of British Airways, to deliver 32 long-haul jets, with an option for 10 more Boeing 787-10 Dreamliners. The agreement came shortly after a U.S.-UK trade pact to reduce tariffs.
China Reopens Door to Boeing
In another major development, China has lifted a previous ban on accepting Boeing aircraft. The ban had been in place since the height of the U.S.-China trade war, during which the U.S. imposed 145% tariffs on Chinese imports. Those tariffs have now been reduced to 30%, while China has cut duties on U.S. goods to 10% for 90 days.
This easing of trade tensions provides Boeing with crucial access to the Chinese market, where it plans to deliver 50 aircraft this year. Long-term, China is expected to account for 20% of global aircraft demand over the next two decades.
Strong Financial Performance in Q1
Boeing’s year-to-date stock performance has been strong, with a 20% gain that outpaces the S&P 500’s modest 0.36% rise. In its Q1 earnings report, Boeing reported a significantly reduced loss of $31 million, down from $355 million the previous year. Revenue climbed 18% to $19.5 billion, driven by a 60% improvement in aircraft deliveries.
CEO Kelly Ortberg confirmed during the earnings call that Boeing still holds a $500 billion backlog in aircraft orders, reflecting sustained long-term demand.
Ongoing Challenges
Despite the positive momentum, Boeing continues to face scrutiny over aircraft safety and regulatory compliance. The 737 Max and other models have been plagued by quality concerns in recent years, culminating in two fatal crashes that led China to become the first country to ground Boeing aircraft in 2019.
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