Boeing Wins Order to Provide AviLease With up to 30 737-8 Aircraft

The Boeing Company BA recently secured an order from AviLease, a Saudi Arabian aircraft lessor, to supply 20 of its 737-8 aircraft, with options to deliver 10 more. This contract win should significantly boost Boeing’s commercial airplane business segment.

Boeing’s 737 MAX: A Brief Overview

The 737-8 is the third-largest model in Boeing’s 737 MAX jet family, capable of carrying up to 210 passengers and flying up to 3,500 nautical miles (6,480 km). It boasts the capability of reducing fuel usage and emissions by 20% compared with its predecessors.

Such exceptional attributes must have been boosting demand for this jet family, resulting in strong order growth like the latest one.   

Consistent Market Demand for Boeing Jets

Rising air passenger traffic, backed by enhanced air travel among normal passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is driving growth in the commercial aviation market. This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of more than 6.5% for the commercial aviation market during the 2025-2030 period. Such solid market growth opportunities offer strong business prospects for Boeing, one of the largest commercial jet makers in the world.

The company’s commercial portfolio includes 737, 767, 777 and 787 families of aircraft, as well as the Boeing Business Jet line. Its proven prowess in commercial aviation can be gauged from the fact that more than 10,000 Boeing-built commercial jetliners are currently in service globally, accounting for nearly half of the global fleet.

Opportunities for Other Aerospace Companies

Apart from Boeing, other prominent aerospace players that have a strong presence in the commercial aviation market and are expected to gain from this market’s growth projections are mentioned below:

Airbus Group EADSY: The company has more than 12,000 commercial aircraft in service worldwide. Its product line of commercial passenger aircraft includes A220 Family, A320 Family, A330 Family, A350 Family and A380.

Airbus has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for EADSY’s 2025 sales calls for an improvement of 10.4%.

Embraer S.A. ERJ: The company is the third-largest manufacturer of commercial aircraft in the world. Its product portfolio of commercial jets includes E175-E2, E190-E2 and E195-E2.

Embraer delivered an average earnings surprise of 150.60% in the last four quarters. The Zacks Consensus Estimate for ERJ’s 2025 sales implies an improvement of 15.7%.

Textron Inc. TXT: The company offers a wide range of commercial aircraft solutions, particularly business jets. Its product portfolio includes a handful of business aircraft like the Citation M2 Gen3, Citation CJ4 Gen3, Citation CJ3 Gen3, Citation Latitude and the Citation Longitude.

Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT’s 2025 sales suggests an improvement of 6.8%.

BA Stock Price Movement

In the past six months, shares of Boeing have risen 42.3% compared with the industry’s growth of 8.3%.

BA’s Zacks Rank

Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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