Boeing stock jumps on FAA 787 jet clearance, averted strike
Yahoo Finance Live anchors discuss Boeing stock amid reports that the aerospace company could be receiving approval from the FAA to resume 787 deliveries.
Video Transcript
- Welcome back to Yahoo Finance Live on this Monday morning. We're watching a bunch of stocks here in the pre-market. But the top one we are watching, because it is, in fact, the top trending ticker on the Yahoo Finance platform, that is Boeing on this news that it might receive approval from the FAA to resume 787 deliveries.
Now, Boeing has not delivered any of these planes since May 2021. Morgan Stanley out saying that Boeing has a backlog of about 120 of these aircraft, could be worth $17 billion of revenue. So of course, big news potentially over Boeing. You've seen the stock really climb here in the pre-market, up about 4%.
- Yeah, the last significant year for the 787 line was 2019, where they produced 158 of those and were able to deliver. And so over these last two years, where you've seen in 2020 and 2021, 2020 only 53 delivered, and then 2021, 14 delivered, this year, of course, none as the FAA was going into their own investigation process around the 787. But this year's a huge money-making opportunity for them to finally be able to deliver on some of those longer, because let us also remember that these are multiyear agreements to deliver these planes to airline operators, as well. And so that could potentially unlock the backlog that they already have right now for some of these orders, too.
- Yeah, there's something else that's not hurting matters here, in addition to the Dreamliner situation, and that's that there is a strike that is hanging over Boeing. And it's averted that strike at least for a few days, even if it's still going to happen. It was scheduled for today, 2,500 machinists that work on the company's fighter jets. So obviously, that's important for the company, and it's a part of the company that hasn't been paused. And so now they're still under new negotiations with the International Association of Machinists and Aerospace Workers, I believe, in the St. Louis area. So it might end up happening later in the week. But for now, it sounds like it's not starting today, at least.
- And another nugget I'll note, too, last week, Boeing hired Walmart's chief communications officer, so he will be taking over as Boeing's new chief comm officer in early September, reporting to CEO David Calhoun. It's a big win. I saw what the team did over there under his watch over at Walmart. So perhaps, Boeing could start crafting a better narrative. It's been a challenging two, three years for this company, so that is good to see if you are a Boeing bull.
- Yeah, major after the 737 crisis that had taken place with the two fatal and deadly crashes that took place. But over these past two years, as well, we've seen them start to ramp back up the ability to educate pilots on some of the changes for the 737, but then additionally just ramp up some of the deliveries with the necessary changes that the FAA also required for them to be able to get back into the skies, as well.
- Yeah, they still have a lot of convincing to do when it comes to investors and regulators for that matter.
