Boeing Secures Major Order from Pegasus Airlines

(Reuters) – With just days left in 2024, Boeing (NYSE:BA) announced its single-largest commercial airplane order of the year on Thursday, when it said Turkish low-cost carrier Pegasus Airlines had placed a firm order for a hundred 737 MAX jetliners. The order includes options for another 100 737 MAX 10 jets.

The deal is worth $5.85 billion after typical industry discounts, according to estimated delivery prices from UK-based Cirium Ascend. Boeing shares rose 2.6%.

The order is a welcome boost for the U.S. planemaker. Its year started with a mid-air blowout on a nearly new 737 MAX, leading to stricter regulatory oversight, which exposed significant production safety and quality problems. A strike shut down almost all Boeing jetliner production for seven weeks.

The company raised $25 billion to shore up its battered finances.

With the strike over, Boeing cautiously restarted 737 production in early December, Reuters first reported.

With the Pegasus order, Boeing has orders for more than 4,300 737s, including over 1,200 for the 737-10, the largest model in the MAX family, according to the company.

However, the U.S. Federal Aviation Administration has not yet certified the MAX 10 and the MAX 7, the smallest model, due to problems related to the engine anti-ice system.

Deliveries are expected to begin in 2028, Pegasus said. Planemakers typically receive most of the cash when the jet is delivered to a customer.

Boeing expects to continue burning cash next year, CEO Kelly Ortberg said in October.

Pegasus, which has seen a rapid recovery in travel after the pandemic, told Reuters this year it was working on a jet order to continue its fast-paced growth into the next decade.

The airline will consider converting its options for 100 more MAX 10 aircraft into firm orders in the coming years depending on market conditions and fleet needs, Pegasus Airlines CEO Güliz Öztürk said in a statement.