[ad_1]
What happened
Actions of Boeing (NYSE: BA) were up more than 6% on Monday due to more positive news surrounding its long-troubled 737 MAX. The gains have continued a strong performance for the Boeing stock so far in November, helping to reverse what had been a miserable 2020 coming this month.
So
Boeing has been going through turbulence for much of 2020, hit by a one-two punch of the 737 MAX’s continued grounding and the impact of the COVID-19 pandemic on commercial aviation. But investors have seen positive developments on both fronts lately.
Image source: Boeing.
The 737 MAX has been cleared to fly back to the United States after 20 months on the ground and is expected to receive international approvals soon. And progress towards a vaccine has raised investor optimism about the airline industry.
The question remains whether these airlines will be able to purchase aircraft after the pandemic. But Boeing got a boost on that front Monday when Air leasing (NYSE: AL) announced the long-term positioning of 13 new Boeing 737s with Alaska Air Group (NYSE: ALK).
Now what
With Monday’s move, Boeing shares are now up 47% in November, but still 34% for the year. This is more or less based on the year Boeing had.
The good news is that the worst seems to be over for the company. The bad news is that it will take years to repair the damage caused by the grounding of the 737 MAX and the pandemic. Boeing is slowly making progress, but investors should be warned that it will take years for the aerospace giant to return to its cruise quota.
[ad_2]
Source link
