Boeing Earns an $18.6B Contract with Qatar Airways (35-Year Chart Included)
Article Source: Reuters
Gulf carrier Qatar Airways ordered 40 Boeing Co ($BA) wide-body jets valued at $11.7 billion and signed a letter of intent for up to 60 narrowbody 737 MAX 8 jets worth $6.9 billion, Boeing and the airline said on Friday.
The agreement for up to 100 jetliners potentially worth $18.6 billion helps fill out Boeing’s order book in a year when sales have slowed sharply, and amid tough price competition with European rival Airbus (AIR.PA).
The deal marked a key commitment by Qatar Airways to Boeing’s new 737 MAX jetliner, after it refused to accept three of Airbus’ competing A320 aircraft earlier this year. Qatar has not ordered 737s previously.
Since 2010, Boeing has seen strong growth rates in all 3 major indicators (colored arrows on the chart). However, in the last year earnings have fallen nearly 36%. As noted above, this $18.6B deal is a welcome order after a year of declined sales and stronger competition from Airbus.
Divined growth has also remained steady, rising 20% in the last year (21% over the past 5 years).