Boeing stock rises after Trump secures major Gulf deals
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Boeing lands multi-billion-dollar deals with Qatar, Saudi Arabia, and the UAE during Trump’s GCC tour, signaling a recovery for the US aerospace giant.
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A Boeing 777X is brought on the runway ahead of a display flight, at the Farnborough Air Show fair in Farnborough, England, Tuesday, July 19, 2022 (AP)
The US aerospace giant Boeing scores gains in the stock market after striking massive deals with Qatar, UAE, and Saudi Arabia amid Trump's visit to the GCC, where the US inked deals worth trillions with the three countries, Al-Monitor reported.
At the signing ceremony in Doha, where Boeing CEO Kelly Ortberg stood alongside him, Trump emphasized the significance of the deal, stating "That's a record, Kelly, and congratulations to Boeing. Deliver those planes, get them delivered!", referencing Boeing's recent delivery challenges, which have caused frustration for both the US president and major Gulf airline customers.
The American aircraft manufacturer, which has been grappling with financial difficulties after reporting nearly $12 billion in losses last year, is now struggling to recover from a turbulent period marked by deadly disasters, production delays, quality control issues, and dissatisfied customers.
On top of these challenges, the Trump administration’s trade policies have added another layer of uncertainty for Boeing, as China, amid last month’s tariff disputes, temporarily stopped taking delivery of new aircraft from the American aerospace giant.
Bloomberg noted on May 13 that Beijing resumed approvals as US-China trade negotiations showed signs of progress, yet the ongoing threat of tariffs continues to cast a shadow over the commercial aviation industry, where Boeing and Airbus remain the dominant players.
Boeing's turnaround in the Gulf
Despite its recent struggles, Trump's tour of Saudi Arabia, Qatar, and the UAE provided a much-needed boost for the embattled aircraft manufacturer, helping counter a string of negative headlines in the Middle East.
Boeing became the clear standout of Trump's Gulf visit when the US plane-maker, together with GE Aviation, struck a massive $96 billion agreement with Qatar Airways on May 14, covering up to 210 jets, which is the largest single order ever placed with the American aviation titan.
The massive deal with Qatar Airways for wide-body jets came just one day after Boeing secured another major order in Riyadh, where the Saudi-backed aircraft leasing company AviLease announced a commitment for up to 30 Boeing 737 MAX jets.
The momentum continued as the tour moved to the UAE, where Boeing and GE Aviation landed a $14.5 billion commitment from Etihad Airways for 28 aircraft, including 787 Dreamliners and 777X models. These successive deals marked a significant reversal of fortune for Boeing in a strategically important region.
