The Boeing Company (BA) said the national Israeli carrier EL AL Airlines ordered four Next-Generation 737-900ERs (extended range) and reserve options for future aircraft.
Boeing will receive roughly $343.2 million for the four-airplane order.
The Boeing 737-900ER is the most recent member of the Next-Generation 737 airplane family. The new airplane has the capacity to seat up to 215 passengers in a single-class configuration and can fly up to 3,265 nautical miles (6,045 km). The 737-900ER offers 6% lower operating costs per trip and 4% lower operating costs per seat mile than other competing models.
Boeing said that the planes delivered to EL AL will be the new Next-Generation 737-900ER which has the all-new 737 Boeing Sky Interior. This is the latest in a series of enhancements designed to improve the Next-Generation 737 for both airlines and passengers.
Boeing said that EL AL’s 737-900ERs will also be 7% more efficient than the first Next-Generation 737s delivered, incorporating performance improvement packages capable of reducing fuel consumption and carbon emissions by 2%.
EL AL has a longstanding partnership with Boeing and has a tradition of flying an all-Boeing fleet. EL AL operates 41 routes to 27 countries with its current fleet of 40 Boeing aircraft.
EL AL Airlines plans to replace its current fleet of Boeing 757-200s with the new Boeing 737-900ERs to expand its fleet in order to meet growing demand. The 737 family of aircraft provide outstanding performance and isthe lowest in the industry in terms of operating costs per seat mile. The decision to add 737-900ERs to EL AL’s fleet will also help solidify its position as a leading airline.
Chicago-based Boeing is the largest aircraft manufacturer in the world in terms of revenue, orders and deliveries, and the second largest aerospace and defense contractor. Also its revenue exposure is spread across more than 90 countries around the globe.
Demand for Boeing’s Commercial Airplanes, due to the continuing recovery of the global economy, emanates from a steady improvement in passenger and freight traffic.
Boeing currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we are maintaining our Neutral recommendation on the stock. This is in sync with other aerospace and defense behemoths like General Dynamics Corporation (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
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