It would likely be safe to think that private jets at an aerospace company such as Boeing (BA) would probably be a sacrosanct privilege for the executive class. But not anymore. The aircraft maker is insisting that its executives fly commercial now, a move that is resonating with shareholders who sent the stock up fractionally higher.
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A report from Business Insider noted that Boeing executives are now expected to hop on commercial flights in a bid to save money. Moreover, Boeing execs will not be permitted to fly first class, or even business class, but rather “economy.” This is a process that has apparently been ongoing for some time, with Boeing’s count of private flights falling from 146 in August to to a mere 29 in October.
A Securities and Exchange Commission (SEC) filing from April showed that Boeing has dropped about $1.9 million on flights for just four of Boeing’s executives since 2021. Dave Calhoun alone accounted for $979,000 worth of that money. While savings on this front would likely be comparatively minor, especially when stacked against the $50 million per day the company lost to its recent strike, every bit helps.
More Cuts at Boeing
Separately, Boeing’s job cuts will hit the state of Florida starting in 2025. A combined total of 141 jobs will be lost throughout the state, though the cuts would take place in “several Florida locations.” Boeing has been cutting jobs for the last few months, so seeing the cuts hit comparatively smaller operations in places such as Florida is to be expected.
Finally, Boeing’s delivery schedules are starting to cause more fallout at airlines. Copa Airlines, which runs an exclusively Boeing fleet, is cutting back on its routes after it became clear expected shipments would not arrive on time. Now, four different travel routes have been canceled, though Copa hopes to get back to those routes before 2025 comes to an end.
Is Boeing a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 33.22% loss in its share price over the past year, the average BA price target of $193.38 per share implies 23.37% upside potential.
