AerCap's CEO, Aengus Kelly, talks about how tariffs are affecting Boeing's production and delivery schedule. He explains the challenges that these tariffs create for the company.
US stocks (^GSPC, ^IXIC, ^DJI) continued to drop following Monday's tech sell-off, with the Dow Jones Industrial falling by more than 600 points. Disney (DIS) shares are under pressure due to cautious guidance from airlines, resulting in its largest intraday decline since May. In contrast, Boeing (BA) saw an increase as Fitch praised its recovery after the strike, while Asana (ASAN) shares fell after CEO Dustin Moskovitz announced his retirement plans.
AerCap's CEO Aengus Kelly mentioned that in a worst-case situation with tariffs, Boeing's prices could increase by $40 million. He also noted that his company has observed a significant enhancement in Boeing's products over the last few years.
Phil LeBeau from CNBC shares updates about Boeing.
On Tuesday, Boeing announced that it delivered 44 planes in February, an increase from 27 in the same month last year. The company is focusing on stabilizing and eventually boosting production of its 737 MAX and 787 models.
Boeing's recovery under Kelly Ortberg focuses on long-term growth and high manufacturing standards rather than just financial results, but it is at risk from economic downturns and trade conflicts. Some major risks include possible bias in key performance indicators, rising costs due to tariffs, and a shift in customer preference towards Airbus. Even with these challenges, Boeing's stock could rise, with a target price of $201.83 by 2027, suggesting a 36% increase.
U.S. Transportation Secretary Sean Duffy is scheduled to visit a Boeing factory in Washington State on Thursday to check that the American aircraft manufacturer is upholding top safety standards.
As Trump increases tariffs, Boeing, a major player in the aerospace industry, could face significant losses, with its stock price dropping. In contrast, its European competitor Airbus has seen its stock rise. This situation highlights the impact of tariffs on these two companies.
On Friday, a federal judge approved a class action lawsuit against Boeing, claiming that the company put profits ahead of safety and exaggerated its dedication to producing safe planes. This decision comes after an incident in January 2024, when a cabin panel blew out mid-air on an Alaskan Airlines 737 MAX 9.
This year, over 100,000 Boeing employees will receive annual bonuses based on the overall performance of the company, instead of being linked to individual business units like in past years.