Boeing share price up, scores a $22bn deal with Ryanair

Boeing Co, the world’s largest aerospace company, revealed it has secured an $11bn order from Ireland-based Ryanair, Europes largest discount airline, which also only flies Boeing 737 jets, with additional $11bn options.

The order for 100 units of the 737 Max 200 model, a variant of the 737 Max 8, in addition to the 100 optional, is the largest ever for Boeing from a European airline.

“Ryanair is proud and honoured to become the lead operator of Boeing’s “gamechanger” 737 MAX 200 aircraft,” Ryanair’s CEO Michael O’Leary said. “These new “gamechanger” aircraft will allow Ryanair to lower our costs and airfares, while improving our customer experience.”

The 737 Max 8, list-priced at $106.9 million, is set for release in 2017, with Boeing already having secured orders for more than 2 219 units. The Max is a revamped version of Boeings best-selling 737 single-aisle economy class plane, and is designed with cost-saving in mind, ideally suiting Ryanair.

In addition to the new Max engines, which would burn 18% less fuel, the airliner will be outfitted with 197 seats, evading an attendant-per 50 passengers legislation costs, calculated to earn as much as 5% in net operational savings.

“The 737 MAX 200 is the perfect fit for Ryanair, providing improved efficiencies, 20% lower emissions, increased revenues and a high level of passenger comfort,” Boeing Commercial Airplanes President and CEO Ray Conner said. “For everyone at Boeing, it is an honor to launch the 737 MAX 200 with Ryanair, one of the world’s most successful all-Boeing operators.”

Chicago-based Boeing scored another massive $8.8bn order from Bank of China Aviation some two weeks ago. Earlier, in July, orders for Boeing planes at the Farnborough Airshow in the UK reached $40.2bn, helping the US economy log some impressive figures for the July and August. The company had earlier reported upbeat Q2 results and upped its full-year earnings projection by some 10%.

Meanwhile, the US aerospace company also increased its forecast for Chinese passenger aircraft demand, spelling a brighter outlook for the company in the fastest-growing air-travel market.

Boeing Co opened Mondays session at $126.61 per share, up 1.54% for the day and 19.45% on an annual basis, valuing the company at $91.24bn. According to a Financial Times survey, 22 analysts offering 12-month price targets for Boeing have a median target of $159.50, with a high estimate of $175.00 and a low estimate of $101.00. The median estimate represents a 27.92% increase from the last price of $124.69.