NEW YORK (TheStreet) -- The Boeing Co. (BA) lost an order for 33 planes, valued at $5 billion, after Air Berlin Plc. (AIBEF) canceled the transaction as a way to reduce investment costs, Bloomberg reports.
By ending its contract to obtain 18 737 airliners and 15 787 Dreamliners from Boeing, Air Berlin said it "will significantly reduce capital expenditure," as the company is looking to cut spending and refinance its debt, due to an increase in losses and a decline in traffic, Bloomberg added.
Shares of Boeing are up by 0.31% to $127.53 in late morning trading on Friday.
Watch the video below for more on Air Berlin's order cancellation of Boeing jets:
Separately, TheStreet Ratings team rates BOEING CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate BOEING CO (BA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: BA Ratings Report