Boeing, the American aircraft manufacturer that was in crisis due to a series of crashes and quality controversies, is making a spectacular comeback. Previously, various countries, including Japan and Qatar, signed purchase contracts for Boeing aircraft valued at tens of trillions of won as insurance to avoid the threat of high U.S. tariffs. On the 25th (local time), Korean Air also joined this trend by announcing the largest aircraft purchase contract in Korean aviation history in conjunction with the South Korea-U.S. summit.
On the 26th, Korean Air announced a $70 trillion investment plan immediately after a summit between President Lee Jae-myung and President Trump in Washington, D.C. The plan involves purchasing over 100 Boeing aircraft and signing contracts for engine purchases and maintenance with General Electric Aerospace. This contract is the largest in Korean Air's history and includes Boeing's flagship models such as the 787 Dreamliner, 777X, and 737 Max. U.S. Secretary of Commerce Howard Gutman noted to Bloomberg, "We just announced the purchase of 103 aircraft and 206 GE Aerospace engines."
The Korean Air contract is part of the extension of the 'aircraft sales' diplomacy that the Trump administration has engaged in. In recent months, President Trump has secured promises to buy nearly 1,000 Boeing aircraft from trade negotiation partners. During his visit to Qatar in May, President Trump witnessed Qatar Airways signing a contract for up to 210 aircraft valued at $96 billion, which includes 130 of the latest 787 Dreamliners and 30 of the 777-9. The White House described this as "the largest widebody aircraft order in the history of aircraft manufacturers."
Subsequently, in July, Japan agreed to purchase 100 Boeing aircraft as part of trade talks, according to the White House. In the same month, it was reported that state-owned Garuda Indonesia was in final negotiations for the purchase of 50 Boeing jets. The Trump administration is reportedly engaging in trade negotiations with China that include the sale of up to 500 aircraft. Based on the only explicit total amount reported by Qatar Airways, the estimated price for 1,000 aircraft is approximately $457 billion. However, experts noted that this is a simple estimate, and the actual total contract amount could vary depending on the aircraft models, detailed options, and contract terms.
At the heart of this massive order is President Trump's unique "art of the deal." The Trump administration, under the banner of 'America first,' has relentlessly attacked trade imbalances with trading partners since April and has introduced the high-tariff card. Political media Axios analyzed that countries are making bulk purchases of Boeing aircraft, which symbolize American manufacturing and are the largest export company, in order to avoid Trump's tariff bomb and solidify friendly relations with the Trump administration.
Matthew Miller, an analyst at CFRA Research, told Axios, "Countries facing tariff threats or seeking to strengthen ties with Washington have turned their eyes to Boeing." He stated, "The aircraft's price can reach hundreds of billions of won per unit, making purchase contracts the fastest way to dramatically change bilateral trade statistics," noting that Boeing has become a key export tool at the Trump administration's bilateral negotiation table.
Boeing faced its worst period before the Trump administration waged a trade war against the world this year. The decisive event was the incident in January last year involving an Alaska Airlines 737 Max aircraft, which suffered a hole in its fuselage. At that time, an Alaska Airlines passenger jet, which took off from Portland International Airport in Oregon, lost a door plug that blocked an unused emergency exit space while flying at an altitude of 4,800 meters. Although rapid decompression occurred, the pilots successfully executed an emergency landing and all passengers survived. Unlike other aviation accidents, this incident was caused by a structural defect rather than adverse weather or pilot skill issues. The Federal Aviation Administration (FAA) launched a thorough investigation into Boeing's production procedures immediately after the incident. The 737 model, its flagship product, was not only grounded but also faced production halts. The media reported that "Boeing's quality control system has collapsed entirely." Meanwhile, its European competitor, Airbus, steadily increased production, widening the market share gap.
Moreover, the escalation of the U.S.-China trade conflict has also increased uncertainty in exporting to its largest market, China. As a result, Boeing's stock price plummeted more than 40% from its peak recorded in December 2024 ($267), falling to $136 by April this year.
However, following the landmark Qatar orders in May, a flood of purchase contracts from various countries led to a dramatic rebound in stock prices. Boeing's stock rose 67% from its lowest point in April, closing at $227 on the 25th. Following the news of the Korean Air contract, it rose more than 2% in after-hours trading, reflecting investor optimism.
The cozy relationship between President Trump and Boeing does not end with the sale of commercial aircraft. In March, President Trump announced that Boeing would be selected as the developer for the U.S. Air Force's next-generation fighter (NGAD). The development program for the sixth-generation fighter, named F-47, has an initial contract size exceeding $20 billion. The aviation industry anticipates that this project will grow to hundreds of billions of dollars over several decades. According to the non-profit organization OpenSecrets, Boeing has spent over $357 million on lobbying since 1998 to exert significant influence on Washington.
However, some caution is being raised. There are concerns that numerous variables remain until final contracts are signed. The New York Times (NYT) reported, "The real tough negotiations and financial agreements will only start after the presidential delegation leaves," suggesting that many of the announced contracts may be at the level of a memorandum of understanding (MOU) with weak legal binding.
Some U.S. media outlets stated that the diplomatic achievements gained by the Trump administration globally could be overshadowed by Boeing's internal issues. Currently, Boeing holds a backlog of over 5,900 aircraft orders. However, following the fuselage hole incident involving Alaska Airlines in 2024, the FAA has strictly limited production expansion until safety issues are resolved. Additionally, since early August, around 3,200 workers at the St. Louis plant in Missouri have been on strike, demanding wage increases and pension guarantees, raising concerns about production disruptions.
The NYT cited experts stating that "the Trump administration has revived an old dynamic of linking contracts between aircraft and airlines to geopolitical favors."