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Boeing Expects Sales Boost in China as Freeze on Sales Could be Lifted

James L. Flint

• November 13, 2023

Aerospace and defense giant Boeing (ticker: BA) may soon see an end to a yearslong freeze on sales in China, according to a report that has resulted in a rise in the company's stock on Monday.

Unnamed sources familiar with the plans have reported that the Chinese government is considering committing to buy Boeing's 737 jetliners as President Joe Biden and Xi Jinping meet in San Francisco this week, Bloomberg has said. Since 2018, Boeing has not made any substantial sales of the 737 in China due to the grounding of the model following two crashes.

Boeing's current showcase of other models at the Dubai Air Show adds to the anticipation of potential new 737 sales. The company is spotlighting its fuel-efficient 777 and 787 family of aircraft, as well as military-use jet fighters, Apache and Chinook helicopters.

Boeing's market outlook appears promising with defense budgets projected to rise in the U.K., U.S., and Europe over the coming years, as stated by Aarin Chiekrie, an analyst at Hargreaves Lansdown. Chiekrie further highlights that "the sky really is the limit for this jet-maker."

Despite disappointing earnings, Boeing's shares have shown resilience, with a premarket trading increase of 3.2% to $202.90. Year-to-date, the stock has gained over 13%. Last month, Boeing reported a larger-than-expected loss for the third quarter.