Thursday 20 June 2019

Boeing shares up on report of Max jet clearance

Plane-maker’s shares had lost around €35bn of market value
Plane-maker’s shares had lost around €35bn of market value
Major customer: Michael O’Leary’s Ryanair struck deal with Boeing. Photo: Bloomberg

Ankit Ajmera and John Mulligan

Boeing shares rose as much as 3pc to more than a two-week high yesterday after Reuters reported that the US Federal Aviation Administration (FAA) expects to approve 737 Max jets to return to service as soon as late June.

Shares of the world's biggest plane-maker have fallen nearly 15pc since the fatal crash of an Ethiopian Airlines 737 Max jet in March, erasing about $40bn (€35.7bn) in market value.

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The stock has also been among the worst performers on the S&P 500 index and the Dow Jones Industrial Average. The benchmark index is up about 3pc during the same period, while the Dow has risen by a marginal 0.2pc. If the aircraft is cleared to fly by June, its operators, including Southwest Airlines, American Airlines and United Continental, would likely not have to extend costly cancellations that they have already put in place for the peak summer flying season.

Here, the Irish Independent revealed that Ryanair has struck an agreement with Boeing worth hundreds of millions of euro in compensation for the worldwide grounding of the 737 Max jet.

Ryanair is one of Boeing's biggest customers. It was due to add the first Max jet to its fleet last month, but deliveries have now been pushed back to October or November.

Ryanair's Michael O'Leary has said he expects to have some flying over the coming winter, following ing the Max recertification by safety authorities in the US and Europe.

Additional reporting Reuters

Irish Independent

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