Why Boeing Shares Are Up Today

boeing shares are climbing november 10 2020

Boeing Co. (NYSE: BA) shares continue to climb Tuesday over reports that the grounded 737 MAX aircraft could soon be cleared for return.

It’s been a long process for Boeing after the aircraft was grounded in the spring of 2019 following deadly crashes in Ethiopia and Indonesia, killing 346 people.

However, Reuters reports that the Federal Aviation Administration is nearing the end of the approval process for the aircraft. Reuters mentioned that the final approval could come on November 18.

Boeing’s taken some hits over the last couple years. Its 737 MAX was grounded in 2019 after 346 people died in two crashes. Then in 2020, the coronavirus pandemic dealt the travel industry a massive blow. Nearly two weeks ago, Boeing announced plans to decrease its staff to under 130,000 by year’s end.

But then on Monday, following Pfizer Inc’s coronavirus vaccine report, Boeing shares soared. Today, BA shows continued strength due to the news on the 737 MAX.

In late October, Boeing told investors that they weren’t expecting to increase production rates in 2022 beyond just 31 new planes because of the travel uncertainty due to the pandemic.

“Despite the near-term headwinds, we remain confident in our long-term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust,” Boeing president and CEO Dave Calhoun stated in the company’s third-quarter results release.

At writing, Boeing shares are up 4.60% at $187.61.

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