We know that aerospace stock Boeing (BA) is back to work and churning out aircraft again. And this time, hopefully, most of them will stay intact for a full flight. But new reports out from The Air Current suggest that Boeing is really planning to ramp up its production, which will likely come as good news to all those airlines who are waiting for their planes. Boeing investors are happy to hear it as well, and shares were up modestly in Friday afternoon’s trading.
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Earlier announcements revealed that Boeing has completely restarted its operations, after a protracted strike from the machinists’ union halted the line for a full 53 days. But even after the strike ended, Boeing did not fire back up right away. No, Boeing launched into an extensive program of training and certification to help get all its employees back up to speed. That measure will likely endear it to the Federal Aviation Administration (FAA), which at last report still has a production cap in place.
And that cap will be tested in the months ahead. Boeing plans to hit that maximum of 38 jets per month once again as of May 2025. Suppliers have already expressed concerns that Boeing’s plans here are too ambitious, and will ultimately repeat previous mistakes of pushing the supply chain too hard.
Korean Expansion
Yesterday, we got news of several new deals for Boeing, which will prove welcome as Boeing tries to make sales and get cash coming in. But another new deal cropped up just today, as Air Premia—the biggest hybrid carrier in South Korea—added another Boeing 787-9 Dreamliner to its roster.
This represents, noted a press release from Air Premia itself, the first fleet expansion it has undertaken in the last year and a half, and it will not stop there. With 2025’s arrival, it looks to add three more aircraft to the lineup, giving it a grand total of nine. Though we do not yet know if those new aircraft will all come from Boeing’s hangars or if Air Premia will look elsewhere. It also plans to open up new routes, adding flights to Da Nang and Hong Kong in early 2025, and by 2025’s end, expanding to Seattle and Honolulu.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 12 Buys, seven Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 31.33% loss in its share price over the past year, the average BA price target of $190.29 per share implies 5.6% upside potential.
