Why Boeing stock hit a new high? The $200 billion jet deal and more

Boeing is soaring and it’s not just in the skies. Boeing stock recently hit a record high of $209.66, driven by what could be called one of the most significant deals in aviation history. On the surface, it's a jet order. But underneath, it is a high-stakes turnaround story with global impact. Let us break it down.

Boeing stock’s historic high: What triggered the surge?

Shares of Boeing hit a new high on May 15 following the announcement of a mammoth aircraft deal with Qatar Airways, valued at nearly $200 billion. The deal includes:

• 130 Boeing 787 Dreamliners
• 30 777-9 widebody jets
• Options for 50 more aircraft
• Over 400 engines from GE Aerospace to power the jets.

This is not just Boeing’s largest widebody aircraft order but it is also Qatar Airways' biggest purchase in history and the largest widebody engine deal GE Aerospace, listed as General Electric, has ever inked. This agreement was signed during a diplomatic visit, with former U.S. President Donald Trump and Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani in attendance. I

Here’s why Qatar Airways is all in:

• The airline is aiming to upgrade to the “cleanest, youngest, and most efficient” fleet in global aviation.
• Strong travel demand, especially long-haul travel, is bouncing back post-pandemic.
• The Gulf carrier already operates 94 Boeing 777Xs and now deepens its bet on Boeing’s next-gen widebody lineup.

Qatar chose GE Aerospace’s GEnx and GE9X engines over rival Rolls-Royce, particularly given the latter’s recent challenges in hot climates, a critical factor for Gulf airlines.

What does this deal mean for Boeing?

To say Boeing needed this win is an understatement. The company has been in damage control mode for the last five years, struggling with a mix of crises including:

• Safety issues following the Boeing 737 MAX crashes
• Manufacturing defects that disrupted schedules
• A near two-month-long machinist strike in 2024
• Massive losses, the last annual profit came in mid-2021

In 2024, Boeing posted a net loss of $11.8 billion. And though the first quarter of 2025 showed some signs of stability as losses narrowed to 16 cents per share versus 56 cents a year earlier, the road to recovery is far from over.

This Qatar deal offers multiple lifelines:

1. Revenue certainty: With up to 210 new orders, Boeing secures long-term demand for its widebody production lines.
2. Jobs and goodwill: The White House estimates the deal could support over 400,000 jobs in the U.S.
3. Brand trust: Winning back customer confidence post-737 MAX crisis is critical. A massive order from a prestige carrier like Qatar speaks volumes.

Boeing’s Financial Picture: Turning the corner?

Let’s take a closer look at Boeing’s financial situation, which has started to show signs of gradual improvement. In the first quarter of 2025, the company improved its free cash flow usage, reducing it to -$2.3 billion compared to negative -$3.9 billion, a year ago. This shift, while still in the red, indicates that the company is slowly regaining operational stability.

Here's a quick snapshot of the key financial metrics:

CEO Kelly Ortberg, in a message to employees, called 2025 Boeing’s “turnaround year”. The company is ramping up production of its 737 MAX, aiming to hit 38 aircraft per month soon, with the goal of increasing that to 42 per month by the end of the year. This ramp-up is especially crucial since the 737 MAX remains Boeing’s most profitable and in-demand aircraft. But not everything is in Boeing’s hands.

Boeing tariff trouble: A cloud still hanging

The jet deal comes at a great time as Boeing is still feeling the fallout from the U.S.-China trade war. The Chinese government halted new Boeing aircraft deliveries amid tariff tensions, impacting Boeing’s access to the world’s second-largest aviation market.

Although Boeing’s robust order backlog of $545 billion provides some buffer, the continued freeze on deliveries to China is a massive revenue opportunity left untapped.

Ortberg tried to put an optimistic spin on it, noting that the demand pipeline is strong enough to “navigate this environment.” But analysts agree that full recovery for Boeing will require either a reset in the U.S.-China relations or stronger market penetration in other emerging regions.

GE’s boost and Airbus’ setback

While it may seem like it on the surface, GE Aerospace is not just a bystander in this story, it is a major winner. Its 400-engine deal with Qatar is the biggest in the company’s history. It also solidifies GE9X as the dominant engine on Boeing's 777X, locking in future maintenance and upgrade contracts.

Airbus, on the other hand, has reason to be concerned.

• Its A350 widebody jets, powered by Rolls-Royce engines, have faced maintenance challenges in hot-weather markets like the Middle East.
• Qatar Airways has a strained relationship with Airbus, stemming from a now-resolved legal dispute over A350 surface degradation issues.

While Airbus remains the larger player globally in terms of deliveries, Boeing is now making serious inroads in long-haul, high-margin aircraft, especially if it can hit production targets for the delayed 777X, which is now expected to start deliveries in 2026.

Why investors are watching Boeing closely

Here’s why this deal and the subsequent Boeing stock movement matters beyond aviation buffs and aerospace insiders:

• Jobs impact: Boeing claims 4 lakh U.S. jobs are tied to this deal. That is a real economic boost.
• U.S. manufacturing narrative: The deal reinforces the narrative of American manufacturing revival, especially with Trump and Ortberg spotlighting it during a diplomatic event.
• Investor confidence: A narrowed loss, a clear production strategy, and a massive order backlog show Boeing might finally be on solid footing again to recover from recent setbacks.
• Competitor dynamics: With Airbus struggling in some regions, the balance of power in global aviation is subtly shifting.

Is everything well for Boeing?

This $200 billion jet deal is seen as a turning point for Boeing. However, challenges remain. From delayed 777X certifications to trade tensions with China and a fragile global supply chain, the aircraft maker’s path ahead is definitely not a smooth one. That said, this deal has given the company a: momentum.

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