A statement regarding this demand was made during the briefing marking of the 50th 787 Dreamliner delivered by Boeing Co to Japan’s largest airline which is ANA Holdings Inc. According to Boeing’s Northeast Asia senior vice president for sales Ihssane Mounir, they are watching closely and are currently not experiencing any signs of decline in the demand despite the possibility that the global economic conditions could change.
This was also in response to the weak sales growth in the country reported recently by other industrial companies from the U.S. A decline was predicted to last until the end of the year following the reports.
Following the delivery of the Dreamliner, ANA also is now operating 50 of their 787 widebody jets even after the report of the decline in the demand for the double aisle aircraft on a global scale. ANA is also set to receive 33 more units of the said jet along with plans for twenty 777-9 widebody jets to be delivered tentatively.
Looking back at Boeing’s Q2 earnings report of $3 billion prior to taxes, the earnings were rather well with their revenue rising by 0.9% in Q2. The increase in the delivery and production of 777 and 787 widebodies comprised most of the increase even after facing a decline in the company’s defense business.
After Boeing Co announced the delivery of the 787 Dreamliner, stocks remained to trade in the green for nine consecutive sessions following the company’s announcement that they are leading the Airbus in the year-to-date orders.
Last August 8, 2016, the company confirmed that they have not managed to book Air Asia’s orders for 100 A320s and orders for the 737 MAX hasn’t been signed or booked. This did not stop the stocks to trade higher opening at 131.95 and closing at 132.17 a rebound from closing at 131.68 the previous session.
Despite not getting orders finalized, the stock still went higher the next day and has remained in the green for the following sessions.
On a 20-day moving cycle, Boeing’s stocks moved up with an average of 1.74%. The volatile price of the stock for a week moved at 0.98% and 1.28% for a month. The stock tried to break out the resistance level at 132.81 on August 11 and has managed to successfully break out of the resistance on August 11.
Subsequent to the company’s announcements of new orders and production, the stock continued to climb upward as of writing.
It was also the same day as the delivery of the Dreamliner to the ANA when Boeing expected an order for a B737-800 from Jeju Air, South Korea’s low-cost carrier. The order is set to pay Boeing 317 billion won or $291 million by October 2018.
Boeing also has been given a go signal to start the production of the KC-46 Pegasus for the U.S. Air Force under a $2.8 billion contract. The U.S. Air Force will be getting the said aircraft as their new aerial refueling tanker after 13 years. Back in 2011, an initial contract was given to Boeing to develop and design the production of a next-generation tanker aircraft. These are scheduled to be delivered next year.
Other 787 Dreamliner deliveries this 2016
Before the delivery of the Dreamliner to the ANA and the orders from Jeju Airlines, 14 orders for the said aircraft was placed by Air Europa which is believed to have cost $3.6 billion then. The order was recorded to have been the largest order the company received from the said carrier.
Aside from the Air Europa orders, Boeing also received orders for seven 787-9s and thirteen MAX 8s from Air Lease, TUI Group, and Ruili Airlines. Four unidentified customers which were later revealed to be Egypt Air, Standard Chartered
Dreamliner’s Performance In The Past Year
Although the 787 Dreamliner didn’t always save the company’s back as in 2015, Boeing Co found itself in a pretty deep plunge after failing to reach its forecast for 2015 following a report showing high expenses for the said jet with a 92% dive on its operating cash flow and the stock falling the most on the Dow Jones Industrial Average.
The drain in the company’s operating cash and the declining cost of the Dreamliner back then along with the January forecast that the company will gain another record of billion-dollar orders for the 787 backed investors away causing a decline in the stocks. The stocks fell down for seven successive trading sessions showing a decline of 1.4% to $151.19 failing to meet its goal of gaining 16% for the year.
Looking back at the company’s recent attempts on promoting the 787 Dreamliner, stocks can be expected to rally as long as there is a demand for the said aircraft.
Although the recent increase of the stock was in line with a report of a lesser demand for jetliners, investors will remain encouraged as long as there is a number of orders for the 787 Dreamliner no matter how few.
The trend with airlines transitioning to double-aisle aircraft is an assurance for the stocks to remain high as well.