Boeing (NYSE: BA) stock rose in premarket trading Thursday on reports that the planemaker’s 737 MAX jet could return to service in China, later this month.
Bloomberg first reported this.
Boeing stock was valued at $223.17 as of 07:51 AM EST, an increase of $5.72 or 2.63%. The stock closed trading at $217.45, up 0.66% from its opening price. However, the stocks are still down around 4.7 percent over the last six months. Boeing’s market capitalization was $127.7 billion, based on 8,917,647 shares traded. Boeing’s stock price ranged from $216.3 to $221.2 on Wednesday.
The MAX is expected to resume flights in the coming weeks, but no firm date for its first commercial flight in China in nearly three years has been set.
On December 2, China’s Civil Aviation Authority (CAAC) issued an “airworthiness directive” informing airline operators of the changes that must be made to the 737 MAX before the planes can be used in fleet operations.
The CAAC grounded the MAX in 2019 following the deadly crashes in Indonesia and Ethiopia, invited domestic carriers to suggest changes to the aircraft’s aviation control system software and display last month after concluding that Boeing’s modification efforts were satisfactory.
Boeing reported earlier this week that it received 79 new plane orders in December and that it finished 2021 with net orders of 535 aircraft, just ahead of Airbus’s 507, capping its best year of sales since 2018.
Earlier this fall, Boeing predicted that China, the world’s second-largest economy but the largest aircraft market, would require 8,700 new planes over the next two decades, equating to $1.47 trillion in total sales.
Boeing estimates that an additional $1.8 trillion will be needed over the next 20 years to service both current and future fleet additions.
Boeing’s 2021 Market Outlook, an annual analysis of long-term market dynamics, forecasts overall demand for around 43,610 aircraft over the next two decades, a figure worth approximately $7.2 trillion but down from its 2019 forecast of 44,040.