Boeing shares jump most in 40 years as Airbus retains the crown

BOEING shares posted their largest quarterly gain in 40 years after executives laid out a plan to turnaround the company after four years of turmoil that have cemented Airbus’ lead as the world’s biggest planemaker.

Boeing’s shares soared 57 per cent during the final three months of 2022, adding US$42 billion to its market value, according to data compiled by Bloomberg. That gives Boeing a market capitalisation of US$113 billion, about US$19 billion more than Airbus.

But Airbus delivered 565 jetliners last year through the end of November compared to 411 from Boeing, which hadn’t delivered more than 51 jets in a month last year. That meant Airbus is likely to retain its position as the biggest planemaker on this basis. They won’t reveal their final delivery – and sales – totals for 2022 until early January. 

The title as company with the most sales could hinge on recent deals. As of the start of December, Airbus had 825 orders compared to 576 net sales for Boeing. And Boeing chipped away at the lead with a 200-jet sale to United Airlines and a 40-jet deal with a lessor.

Still, both companies will be challenged with delivering the planes they’ve sold on time. Manufacturing hiccups and supplier strains have led to a shortage of newly made jets. But there’s an upside: the planemakers are shielded from recession risks such as order cancellations.

“If global airlines cancel orders in 2023, the next available aircraft delivery slots are not largely available until 2028,” Morgan Stanley analyst Kristine Liwag wrote in a Dec 30 note to clients. BLOOMBERG