Shares of Boeing, the largest U.S. aircraft maker, rose to a two-year high. Benefiting from President Donald Trump's "America first policy," aircraft deliveries hit a record high for the first time in seven years, boosting the odds of a return to profit.
On the 20th (local time), Boeing closed at $249 (about 370,000 won) on the U.S. stock market, up 0.5% from the previous trading day. That is the same level as the closing price just before a door-sized panel blew off a Boeing plane operated by Alaska Air Group on Jan. 5, 2024. After that incident, Boeing shares plunged as much as 45% over roughly 15 months.
Boeing's stock has been on a roller coaster since 2019. It hit a record high in March that year, but then slid sharply as a series of accidents involving the 737 Max and the pandemic paralyzed air travel worldwide. The stock recovered until just before the 2024 incident, but was hit again by the midair door panel blowout on an Alaska Airlines Boeing 737 Max 9 in January that year and the ensuing federal investigation.
After years of weak results, Boeing is likely to return to profit this year. As global operations of the accident-prone model were halted for about two years after back-to-back incidents, Boeing has posted losses since 2019. This year, however, deliveries of its mainstay 737 and 787 are rebounding, lifting expectations for improved results. Earlier, CNBC reported that Boeing logged 1,173 aircraft orders last year, up 211% from the prior year (377), surpassing rival Airbus (889) to reclaim the top spot in aircraft orders for the first time since 2018.
Ben Chittenden, a portfolio manager at U.S. investment bank Westwood who holds the stock through several funds, said, "Management has done an excellent job moving from a crisis phase to a recovery phase." Chittenden added that Boeing's solid order book and the swing to positive quarterly free cash flow are encouraging investors. Last month, Boeing reaffirmed its long-term goal of generating $10 billion (about 14.7 trillion won) in annual free cash flow.
Boeing is now focused on ramping up output of its flagship 737. The Federal Aviation Administration (FAA) signaled that move in October last year by raising the monthly production cap for the 737 Max, Boeing's mainstay model, from 38 to 42. Bloomberg News reported, "Boeing is increasing 737 production while working to fix manufacturing quality issues and improve a corporate culture that discourages employees from speaking up."
Even so, Boeing remains cautious about the upbeat mood internally. Chief Executive Officer Kelly Ortberg warned employees this month that this year will also be challenging. In an internal memo on the 9th, Ortberg said, "Compared with this time last year, we have made significant progress and laid the groundwork to keep advancing Boeing in 2026," but added, "To sustain a return to normal operations, key issues still need to be addressed, and it may take even more effort than last year."
Ortberg's caution is seen as recognizing that, while Boeing's stock has recovered to its January 2024 level, it still has a wide gap with the all-time high of $440.62 set on March 1, 2019. Olivier Brochet, an analyst at Rothschild & Co. Redburn, said, "For Boeing to fully regain investor confidence, it is essential to successfully execute certification plans for the 777X and the new 737 variants." Boeing is set to outline future production plans at its earnings release on the 27th.