Ireland-Based Lessor Avolon's Sky-High Move: Places 140 Aircraft Order With Airbus And Boeing
Portfolio Pulse from Shivani Kumaresan
Avolon, an aircraft leasing company, has placed an order for 100 A321neo aircraft from Airbus SE (OTC:EADSY) and 40 737 MAX aircraft from Boeing Co (NYSE:BA). The orders, valued at $12.95 billion for Airbus and $4.9 billion for Boeing, are scheduled for delivery in 2032 and are subject to shareholder approval. Avolon's fleet will increase to 1037 aircraft, and the new aircraft are expected to reduce fuel use and carbon emissions by up to 20%. Avolon's CEO expressed confidence in their balance sheet and relationships with Airbus and Boeing. Boeing highlighted Avolon's repeat order as a sign of confidence in the 737-8. BA shares rose 0.67% to $249.75.
December 12, 2023 | 5:06 pm
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POSITIVE IMPACT
Boeing Co received an order for 40 737 MAX aircraft from Avolon, valued at approximately $4.9 billion, with deliveries scheduled for 2032.
The order from Avolon is a positive development for Boeing, especially as it comes after a previous order for 737-8s earlier in the year. This repeat business is a testament to the 737 MAX's recovery and Avolon's confidence in Boeing's product, which may lead to a positive short-term impact on Boeing's stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Airbus SE received an order for 100 A321neo aircraft from Avolon, valued at $12.95 billion, with deliveries scheduled for 2032.
The substantial order from Avolon is likely to be viewed positively by investors as it reflects strong demand for Airbus's A321neo aircraft. The financial impact is significant, and the long-term commitment from a major lessor like Avolon could bolster investor confidence in Airbus's order book and future revenue streams.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80