Boeing (BA) - Get Boeing Company Report shares jumped higher in pre-market trading amid reports that after authorities in China are edging closer to lifting their two-and-a-half year ban on the 737 MAX.
Reuters reported the China's Civil Aviation Administration CAAC is happy with changes made to the 737 MAX's aviation control system software and display, following deadly crashes in Indonesia and Ethiopia, and has invited domestic carriers to comment before the end of the month.
Boeing also announced orders for two 777 freighters at the Dubai Airshow from Emirates SkyCargo valued at just over $700 million. It's also in advanced talks to sell a freighter version of its 777x passenger plane, according to senior vice president of commercial sales and marketing Ihssane Mounir, and is "getting close" to resuming deliveries of the delayed 787 Dreamliner.
Boeing shares were marked 5.4% higher in mid-day trading Monday to change hands at $233.00 each.
Boeing China President Sherry Carbary said in September she hoped the CAAC, which grounded the jet in 2019, would reverse that decision by the end of the year.
That same month, Boeing said China, the world's second-largest economy but the largest aircraft market, would likely need 8,700 new airplanes over the next two decades, a figure that translates to overall sales of around $1.47 trillion.
A further $1.8 trillion will likely be needed to service both its existing and future fleet additions over the next 20 years, Boeing said.
Boeing's 2021 Market Outlook, its annual analysis of long-term market dynamics, sees overall demand for around 43,610 over the next two decades, a figure that represents around $7.2 trillion in value but is down from its 2019 forecast of 44,040.
Boeing's ten year forecast sees global demand for 19,000 commercial airplanes valued at around $3.2 trillion, the company said, as cargo fleets expand to meet expanding e-commerce sales in major economies around the world.
Last month, posted a wider-than-expected third quarter loss of 60 cents per share, as well as softer revenues of $15.3 billion, as the planemaker cautioned that charges linked to its delayed 787 Dreamliner could reach $1 billion.
Boeing said earlier this year it would rim production of its 787 Dreamliner following the discovery of a structural flaws in the troubled twin-aisle aircraft, and booked $183 million in third quarter charges as a result.
That figure could rise to $1 billion, Boeing said. The group also booked a further $185 million charge linked to the delayed Starliner astronaut capsule.