Boeing has announced an unprecedented agreement with Qatar Airways. This memorandum is one of several signed during former President Donald Trump’s historic trip. This significant arrangement marks the second major deal for Boeing during Trump’s visit and is anticipated to bolster the company’s efforts to recover from previous setbacks. The precursor planes included in this new agreement won’t start delivery until 2028.
Airbus is now facing its own huge 5,600-plane backlog that Boeing is struggling with. This backlog amounts to over seven years’ worth of production at their current pace of output. The near six-year backlog also shows the widespread demand for Boeing aircraft. Yet Boeing will have great difficulty ramping up production after a tumultuous past five years of manufacturing and safety scandals.
In Q1 of this year, Boeing ended up delivering just 130 airplanes. This success might indicate the company’s legitimate turn towards rebuilding its brand and operations. Kelly Ortberg, a prominent figure within the company, stated in April that Boeing’s recovery plan was in “full swing.” As a result, Boeing lost an eye-popping more than $10 billion last year. That dramatic alternative was compounded by a historic seven-week strike that left its workforce demoralized and operations crippled.
And just earlier this year Boeing faced more rough waters in its production push. The crisis deepened in January 2024 when a panel blew out on one of its aircraft. This crash led to a sudden and severe cutback in production, exacerbating the production challenges that have already troubled the company for months. Yet, despite these setbacks, Boeing’s shares have climbed roughly 20% since January, indicating some investor confidence in the company’s recovery trajectory.
The company was hit by more intractable problems in China, where customers had largely ceased accepting aircraft because of rising tariffs. The latest U.S.-China trade truce has relieved some of the burdens. This financial buoyancy gives Boeing the breathing room it needs to catch up in a key strategic market.
Industry analyst Danni Hewson called this latest deal a “lifeline” for Boeing.
“Boeing’s turnaround has been fraught with difficulties, not least last year’s strike, so this deal will feel like a significant win coming hot on the heels of China’s decision to allow its airlines to bring in planes that are currently on order, at least for now.” – Danni Hewson
Trump emphasized the importance of this deal during his trip, stating that it is “the largest order of jets in the history of Boeing, that’s good.” This claim further highlights the size and transformative nature of the deal, especially relative to Boeing’s business going forward.