Boeing's Shares Rise After Pegasus Airlines Orders 737 MAX

Shares of The Boeing Company (NYSE: BA) climbed 3% today following an announcement from Pegasus Airlines, Turkey's leading low-cost carrier, about a significant order for Boeing's 737 MAX aircraft.

The Order Details

The deal includes a firm order for 100 of the 737 MAX 10 models, with options for an additional 100 planes. This order surpasses the size of Pegasus's existing fleet and indicates strong confidence in Boeing's 737 MAX series.

Pegasus Current Fleet

The order is particularly significant as it exceeds the current Pegasus fleet, which comprises:
– 46 A320-200neos
– 41 A321-200neos
– 7 A320-200ceos
– 16 737-800s

Initial deliveries of the new aircraft are scheduled for 2028, in line with Boeing's guidance for MAX 10 certification, which is expected between late 2025 and early 2026.

Analyst Insights

Jefferies analyst Sheila Kahyaoglu provided insights on Boeing's delivery schedule, stating, "We assume 45 MAX deliveries in Q4 (which could be a stretch, given a big Q4 ramp and 12 delivered in Oct/Nov) with 270 for 2024 and 384 in 2025 (assumes 29/mo production vs. 32/mo deliveries)."

This substantial order from Pegasus Airlines may indicate increasing market confidence in the 737 MAX following its previous grounding and safety issues.

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