Boeing stock drops - Shafaqna English

President Trump approved a $2.8 billion sale of heavy bombs to Israel, including 40,000 one-ton bombs, 20,000 2,000 lb. bombs, and 20,000 bunker-busting warheads. The weapons will replenish Israel's stockpile, which has been used in Gaza, the West Bank, and Lebanon. Human rights groups have condemned the use of these bombs, citing their impact on civilians and infrastructure. The sale involves U.S. defense contractors Boeing, Lockheed Martin, RTX, General Dynamics, and Northrup Grumman.

The U.S. Navy awarded Boeing a $562 million contract for three MQ-25A Stingray unmanned aircraft, with initial deliveries expected in 2029. The MQ-25A program, comprising 76 air vehicles, aims to provide carrier-based refueling and integrate unmanned systems into naval aviation. The contract includes funding for long-lead components to support future production.

Korean Air finalized a $44.8bn deal with Boeing, GE Aerospace, and CFM International for 103 aircraft and 21 spare engines, including 20 Boeing 777-9s and 25 Boeing 787-10s. The agreement also covers a 15-year maintenance contract worth $8.6bn. According to Korean Air, the deal supports capacity growth and carbon reduction targets. Boeing's 777-9 deliveries are expected to begin in 2027.

Jet Airways' liquidator failed to recover $92m in payments to Boeing for undelivered aircraft. The Mumbai NCLT ruled the dispute involved contractual issues beyond its jurisdiction. Boeing claimed the payments offset its larger creditor claim. Jet Airways' 2020 accounts showed $52.5m in advances to Boeing, with the manufacturer removing 135 aircraft from its backlog.

Boeing CEO Kelly Ortberg stated that 737 MAX production stabilization will take longer than expected, with shares falling 4% on the news. The company faces delays in wing production and certification of its largest 737 MAX variant, the 737-10. Additionally, 787 Dreamliner production is slower than planned due to engine shortages and certification delays, potentially reducing free cash flow to $2 billion instead of the forecasted $3 billion. Ortberg also expressed caution about expectations of a

Boeing presented a final contract offer to the SPEEA union, including wage increases of 10% in October and 4% in 2027, with additional increases through 2030. The union will vote on ratification, with a strike possible if no agreement is reached by October 6. The offer includes revised work-from-home policies and overtime limits for engineers and scientists. Boeing aims to certify the 737 MAX 10 and 777X by year-end.