The plan for aerospace stock Boeing (BA) to get the 777X off the ground has been a plan that experienced more than its share of delays. Had everything gone to plan, the planes might currently be in the skies. But they are still awaiting certification, and airlines like Lufthansa (DLAKY) are starting to reconsider what they will do if the delays continue. Boeing investors did not seem especially concerned, and Boeing shares gained around 2% in Wednesday afternoon’s trading.
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Lufthansa is just one example—though possibly the most prevalent example—of airlines reconsidering what impact further delay might have. Lufthansa is the launch customer for this new series of aircraft, at last report, so its moves might well spell a larger trend at work.
One major part of the plan is to keep its current fleet of Airbus (EADSY) quadjets running through the rest of this year. Another major part is partially related to surges in fuel prices seen recently, to cut back on some long-haul operations where the 777X would have been put into use. Then, when the summer of 2027 arrives, Lufthansa will decide which jets will remain in service, and which lines will be staffed or cut outright.
T-7A Red Hawk Goes Live
New reports say that Boeing now has a $219 million contract with the United States Air Force to produce a line of trainer jets known as the T-7A Red Hawk. Boeing is set to produce 14 of these, and will also provide spare parts and support equipment along with training on how to actually fly the Red Hawk.
“The T-7A is a pivotal program for the future of our combat air forces, and entering production brings us one step closer to putting this essential capability into the hands of our instructor pilots and students,” noted William Bailey, currently handling assistant secretary for acquisition, technology and logistics duties.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 20.92% rally in its share price over the past year, the average BA price target of $274.27 per share implies 19.53% upside potential.
