Boeing (BA) won a key approval from China’s aviation regulator, bringing the Dow Jones aerospace giant one step closer to resuming 737 Max deliveries in the country. The Dow Jones aerospace giant delivered a 787 Dreamliner to a Chinese carrier for the first time in years. BA stock rose slightly Thursday.
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Boeing still needs approval from China’s National Development and Reform Commission to begin 737 Max jet deliveries to individual airlines, according to the report from trade publication Air Current.
China Southern Airlines has apparently conducted a 737 Max testing flight, Deutsche Bank analyst Scott Deuschle reported Wednesday. That is “suggestive of a higher probability that deliveries of 737 MAX aircraft into China could resume in the coming months.”
Boeing hasn’t delivered the 737 Max to a Chinese airline since March 2019. The 737 Max was grounded from March 2019 to November 2020 following two deadly crashes. The Covid pandemic chilled air travel and the need for new jets. That was especially true in China, where a zero-Covid policy only ended in late 2022.
Domestic Chinese carriers didn’t begin flying the Max again until January 2023.
Meanwhile, Boeing delivered a 787 Dreamliner to Juneyao Airlines on Thursday. It’s the first direct Dreamliner sale to a Chinese airline since 2019.
Boeing Stock
Boeing stock edged up 0.7% to 262.02 in Thursday’s market trading, but backing off a fresh 52-week high of 267.54. Shares fell 1.2% to 260.25 in Wednesday’s market sell-off.
BA stock has skyrocketed from 176.25 in late October.
Boeing 737 Max deliveries in China would be good news for jet-engine maker General Electric (GE). GE stock rose 2.9% to 126.97, a fresh six-year high.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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