Boeing called China's order for 200 airplanes the "first tranche." The market was disappointed with it
China market opens up for Boeing's narrow-body airplanes for first time in a decade
China has discussed with the U.S. ordering 500 Boeing airplanes, sources told Reuters / Photo: Unsplash/Haydn
China's decision to order only 200 Boeing planes during U.S. President Donald Trump's visit is only an "initial tranche" in a potentially larger deal, the aircraft maker's CEO Kelly Ortberg told Reuters.
Details
The top executive called his trip to China with Trump "super successful." It rediscovered that market for the first time in nearly a decade for the company's narrow-body aircraft, Reuters wrote, citing Ortberg. "It's a good start. And I'm confident that it will leave this market open, that this is the initial tranche of airplanes, followed by the next tranche of airplanes," the Boeing CEO said.
Reuters sources said before the deal that China had discussed with the U.S. side the order of about 500 Boeing airplanes. The officially announced figure, however, disappointed investors. China's agreement to buy 200 airplanes is a new deal that does not include orders that have not been publicly announced before, the Reuters source said.
Boeing declined to comment further on Ortberg's statements. China's Ministry of Commerce and state-owned airlines did not respond to the agency's inquiries.
What about the stock
Boeing shares rose 2.5% in trading on May 27 - after the company's management disclosed that it had passed a key U.S. Federal Aviation Administration (FAA) inspection. This will allow the company to increase production of its main commercial airliner, the 737 Max, from the current 42 airplanes per month to 47.
Boeing's securities have risen by only 3.3% since the beginning of 2026. For comparison, the US broad market index S&P 500 added 9.9% over the same time, while its main competitor - European Airbus - fell in price by 12.6%.
Most analysts advise to buy Boeing shares, MarketWatch shows. The securities have 23 Buy and Overweight ratings versus six Hold (advice to hold) and one Sell (recommendation to sell). The average target price of $270.79 implies a nearly 21% increase in quotes relative to the last closing level.
This article was AI-translated and verified by a human editor
