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Boeing (BA) Wins Order for 30 787 Dreamliners From flydubai
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The Boeing Company (BA - Free Report) clinched an order from flydubai to deliver 30 of its 787-9 Dreamliner jets, marking the first widebody aircraft in this Dubai-based carrier’s fleet. This order will significantly boost Boeing’s revenue growth from its commercial aerospace business.
Boeing’s Take in 787 Dreamliner
The Boeing 787-9 aircraft provides 25% better fuel per seat and lesser emissions than the airplanes it will replace. With exceptional fuel efficiency and lower operating costs, operating costs are likely to be lowered. Since its beginning in 2011, the 787 aircraft family has serviced more than 380 new nonstop routes around the world.
Such remarkable features must have bolstered the demand for this jet family over the past few years. Since its launch, orders for 750 787 Dreamliner airplanes have been placed across the world. Coming to the company’s latest achievements in this space, in November 2023, it finalized an order for two jets from Royal Air Maroc, four from Royal Jordanian and five from Emirates. Revenues earned from these deliveries, including the latest deal for 30 jets, will significantly bolster Boeing’s commercial unit’s top line, which witnessed a solid 25% year over year improvement in the last reported quarter.
Prospects in the Middle East Aviation Market
As we continue to witness steady growth in air traffic over the past few months, the Middle East region has emerged as a forerunner when it comes to regional dominance. Per a recent report by the Mordor Intelligence, the size of the Middle East aviation market is estimated at $62.50 billion in 2023, and is projected to reach $72.07 billion by 2028, at a compound annual growth rate of 2.89% during 2023-2028.
To this end, Boeing’s commercial market outlook estimates that airplane fleet will more than double by 2042 in the Middle East and nearly half of these deliveries will be widebody airplanes. With its established presence in this region, further enhanced by the recent orders, Boeing’s profitability should increase in the coming days.
Peer Prospects
A couple of other aerospace players that can gain from the expanding aviation market in the Middle East region are Airbus SE (EADSY - Free Report) and Embraer SA (ERJ - Free Report) .
Airbus has a long-standing partnership with the Middle East. The company has been providing commercial aircrafts, helicopters, defense and space solutions to this region. Recently, Airbus received an order from EGYPTAIR for 10 Airbus A350-900, with a seating capacity of 340 and 25% fuel efficiency.
EADSY boasts a long-term (three- to five-years) earnings growth rate of 12.4%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 12.4% from that reported in 2022.
Embraer’s products have seen an increasing demand in the Middle East. In November 2023, the company announced that it will be displaying the E-195-E2 commercial jet, the Praetor 600, the most technologically advanced executive jet, the C-390 Millennium multi-mission military tactical transport aircraft and the A-29 Super Tucano aircraft at the Dubai Airshow. Recently, ERJ’s Eve Air Mobility signed an agreement with Kookiejar to provide them with the Urban Air Traffic Management system to support vertiport operations in Dubai.
ERJ boasts a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 21.5% from that reported in 2022.
Price Performance
In the past year, shares of BA have rallied 18.3% against the industry’s 8.2% decline.
TXT boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 6.9% from that reported in 2022.
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Boeing (BA) Wins Order for 30 787 Dreamliners From flydubai
The Boeing Company (BA - Free Report) clinched an order from flydubai to deliver 30 of its 787-9 Dreamliner jets, marking the first widebody aircraft in this Dubai-based carrier’s fleet. This order will significantly boost Boeing’s revenue growth from its commercial aerospace business.
Boeing’s Take in 787 Dreamliner
The Boeing 787-9 aircraft provides 25% better fuel per seat and lesser emissions than the airplanes it will replace. With exceptional fuel efficiency and lower operating costs, operating costs are likely to be lowered. Since its beginning in 2011, the 787 aircraft family has serviced more than 380 new nonstop routes around the world.
Such remarkable features must have bolstered the demand for this jet family over the past few years. Since its launch, orders for 750 787 Dreamliner airplanes have been placed across the world. Coming to the company’s latest achievements in this space, in November 2023, it finalized an order for two jets from Royal Air Maroc, four from Royal Jordanian and five from Emirates. Revenues earned from these deliveries, including the latest deal for 30 jets, will significantly bolster Boeing’s commercial unit’s top line, which witnessed a solid 25% year over year improvement in the last reported quarter.
Prospects in the Middle East Aviation Market
As we continue to witness steady growth in air traffic over the past few months, the Middle East region has emerged as a forerunner when it comes to regional dominance. Per a recent report by the Mordor Intelligence, the size of the Middle East aviation market is estimated at $62.50 billion in 2023, and is projected to reach $72.07 billion by 2028, at a compound annual growth rate of 2.89% during 2023-2028.
To this end, Boeing’s commercial market outlook estimates that airplane fleet will more than double by 2042 in the Middle East and nearly half of these deliveries will be widebody airplanes. With its established presence in this region, further enhanced by the recent orders, Boeing’s profitability should increase in the coming days.
Peer Prospects
A couple of other aerospace players that can gain from the expanding aviation market in the Middle East region are Airbus SE (EADSY - Free Report) and Embraer SA (ERJ - Free Report) .
Airbus has a long-standing partnership with the Middle East. The company has been providing commercial aircrafts, helicopters, defense and space solutions to this region. Recently, Airbus received an order from EGYPTAIR for 10 Airbus A350-900, with a seating capacity of 340 and 25% fuel efficiency.
EADSY boasts a long-term (three- to five-years) earnings growth rate of 12.4%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 12.4% from that reported in 2022.
Embraer’s products have seen an increasing demand in the Middle East. In November 2023, the company announced that it will be displaying the E-195-E2 commercial jet, the Praetor 600, the most technologically advanced executive jet, the C-390 Millennium multi-mission military tactical transport aircraft and the A-29 Super Tucano aircraft at the Dubai Airshow. Recently, ERJ’s Eve Air Mobility signed an agreement with Kookiejar to provide them with the Urban Air Traffic Management system to support vertiport operations in Dubai.
ERJ boasts a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 21.5% from that reported in 2022.
Price Performance
In the past year, shares of BA have rallied 18.3% against the industry’s 8.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Pick
Boeing currently has a Zacks Rank #4 (Sell).
A better ranked stock in the same industry is Textron Inc. (TXT - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TXT boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 6.9% from that reported in 2022.