Boeing makes comeback with record $96B deal from Qatar Airways
What's the story
Boeing has signaled its recovery from a massive crisis by inking a record-breaking deal with Qatar Airways.
The agreement, signed by CEO Kelly Ortberg, includes the purchase of 210 widebody aircraft, including the 787 Dreamliner and the larger 777X model.
The deal was witnessed by US President Donald Trump and the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, at a ceremony at the Qatari Royal Court.
Agreement details
Potential for further expansion
While the White House has valued the deal at $96 billion, customers usually negotiate huge discounts.
Under the deal, Qatar Airways will buy 130 787 Dreamliners and 30 777X aircraft, with an option to purchase 50 more widebody aircraft of either type.
GE Aerospace will provide engines for the planes, marking its largest-ever deal for widebody turbines.
Regional visit
Ortberg's trip to the region coincides with smaller Saudi deal
Ortberg's trip to the region came just as Saudi Arabia's sovereign wealth fund made a smaller $4.8 billion commitment for aircraft.
Trump congratulated Ortberg after the signing of the larger Qatar deal, calling it a record that would help secure jobs at home.
Despite their past disagreements over delays in delivering new Air Force One jets ordered during Trump's first term, they have now reached this significant agreement.
Comeback strategy
CEO's return and Boeing's recovery plan
Ortberg came out of retirement last year to help turn around Boeing, which had been reeling from a major crisis after a near-catastrophic accident in early 2024.
Since his return, he has managed a debilitating strike by workers and repaired the company's balance sheet with fresh financing.
He has also set Boeing on a path to increase the output of its all-important 737 Max and the 787 Dreamliner models.
Market response
Boeing's stock rises following Qatar deal announcement
After the historic order was announced, Boeing shares surged as much as 3.1% to their highest in 15 months.
This has bolstered investor confidence in Boeing's stock and bonds, more than offsetting losses incurred after President Trump's "Liberation Day" trade broadside.
"Boeing is starting to recapture operational momentum after an extended strike and door-plug blowout hamstrung performance last year for its more than $50 billion of bonds," Matthew Geudtner, a Bloomberg Intelligence credit analyst, said.