Boeing (BA) shares are taking off in premarket trading on Monday, riding the wave of positive news from Emirates SkyCargo. The company has announced a new order for five additional 777 Freighters, building upon a previous order of five. This significant order solidifies Emirates’ commitment to Boeing’s widebody aircraft, demonstrating the growing demand for these cargo behemoths.
This latest agreement, finalized in September, brings Emirates’ total order of Boeing widebody aircraft to a staggering 249. Of these, 14 are the impressive 777 Freighters. Emirates SkyCargo has ambitious plans to nearly double its fleet of 777 Freighters to a total of 21 in the coming years, up from the current 11. This expansion reflects the company’s commitment to meeting the surging demand for its air cargo services.
The Boeing 777 Freighter is a true titan of the skies, boasting a range of 9,200 kilometers and a 102-tonne capacity. It’s the longest-range and highest-capacity twin-engine cargo jet, allowing operators like Emirates to connect key markets like the Middle East, U.S., and Europe with more nonstop routes and improved operating efficiency. This makes it a valuable asset for Emirates as they expand their global reach.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, highlighted the booming demand for Emirates’ air cargo services. He sees this as a testament to Dubai’s growing prominence as a trusted global logistics hub, and a reflection of Emirates SkyCargo’s success in providing tailored solutions that meet the specific needs of shippers across various industries.
This recent deal follows Boeing’s positive news regarding a tentative agreement with its union, which includes a significant 35% wage increase over four years and improved retirement benefits. If approved, this agreement will replace a 2008 contract and addresses ongoing financial challenges for the company.
Investors looking to gain exposure to the aerospace and defense sector can explore ETFs such as the Invesco Aerospace & Defense ETF (PPA) and Gabelli Commercial Aerospace and Defense ETF (GCAD).
As of the last check on Monday, BA shares are up an impressive 3.87% at $161.00 in premarket trading. This positive momentum suggests that investors are optimistic about Boeing’s future, buoyed by the strong order from Emirates SkyCargo and the potential for a positive resolution with the union.