One day after Boeing (NYSE: BA) stock bounced higher on news of a big 737 plane sale to the parent company of British Airways and Iberia (the International Consolidated Airlines Group), shares of the airplane-building juggernaut are falling 7.2% as of 1:10 p.m. ET. The reason: Boeing may be encountering turbulence at higher altitudes. Earlier on Thursday, the big news around Boeing was the company's announcement that International Airlines Group has agreed to buy 25 Boeing 737-8-200 aircraft and 25 737 MAX 10 jetliners -- and taken out an option to buy as many as 100 more planes besides.
British Airways owner IAG has agreed to order 50 Boeing 737 Max jets, handing the US aerospace group a much-needed boost as it struggles to overcome a series of production delays to its core programmes. The order is a boost for Boeing’s 737 single-aisle workhorse jet, and comes at a time when the Seattle-based company has faced criticism for a run of delayed deliveries and lost business to rival Airbus. Ryanair’s chief executive Michael O’Leary this week said Boeing needed new management to help turn round problems within its commercial aviation business, which have included certification issues on its major aircraft programmes.
British Airways’ pilots have rebelled over a controversial scheme that siphons off thousands of pounds of their salaries to pay for colleagues left out of work by the Covid crisis.