Boeing stock sticks such as Japan Airlines Order, CFO comments to tariff, cash burn

Boeing (BA )’s shares jumped on Wednesday and headed S&P 500 Gainer after Japan Airlines had announced that they had ordered 17 new 737-8 aircraft from the aircraft manufacturer.

The airline said that it would add the 17 aircraft by ordering in March 2023 for 21 of the same level and 11 aircraft from Airbus, which replace the aging Boeing 767 aircraft. The 38 Boeing 737-8 aircraft are expected to be delivered to the airline in the 2026 financial year, with other Boeing and Airbus aircraft being expected in the 2027 and 2028 financial year.

On Wednesday, the analysts of the Bank of America said on Wednesday that another research company, Aero Analysis Partners, predicted that the March deliveries from Boeing will be higher than in the last month and possibly the 40, which it delivers in January. The analysts have retained a neutral rating with a price target of $ 185.

CFO says no “short -term effects” of tariffs

On Wednesday, Boeing CFO Brian West also said at an industry conference that Boeing does not see any “material effects” of the tariffs of the Trump management for goods such as aluminum and steel. West said that the Boeing supply chain is largely based in the United States and, according to a transcript provided by alphasense, matches expectations in the first quarter.

“We see less operating capital,” said West when he was asked about the first quarter. “So that could be better if we close the quarter and it may be hundreds of millions of cash flow better.”

Boeing did not immediately answer a request for comments to order Japan Airlines. The stocks rose by more than 5%on Wednesday.