Boeing (BA) Stock Gains 2% on Report 737 MAX Commercial Flights in China Will Resume This Month

January 13, 2022 8:33 AM EST
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Price: $190.57 +0.43%

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Shares of Boeing (NYSE: BA) are up over 2% in pre-open Thursday after Bloomberg reported that the aerospace and defense titan is expected to resume commercial flights in China as soon as this month.

Bloomberg’s sources believe that the operational readiness flight, conducted over the weekend in China, is a sign that 737 MAX is close to returning to commercial service.

While the return is near, there is still no clear date with one option also calling for pushing for recertification after the Lunar New Year holiday (Feb 01).

Before authorities allow the updated 737 MAX to return to the skies in China, carriers must first train pilots in accordance with new regulations.

In response to local media reports about the operational readiness flight, Morgan Stanley analyst Kristine Liwag said:

“We view this news positively and see it as a catalyst for the stock. Operators working through the CAAC’s airworthiness directive (and returning 737 MAX to the air is a milestone for an aircraft that has been grounded for nearly 3 years in China.”

Boeing stock is already up 4.6% in 2022.

By Senad Karaahmetovic | senad@streetinsider.com



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