Boeing Co (NYSE: BA) was awarded a $2.1-billion contract Thursday with the U.S. Air Force to produce 15 KC-46 refueling tankers. This is in addition to the 12 KC-46s ordered by the Air Force on Jan. 12.
Why It Matters: The airline industry has suffered through the pandemic with far fewer passengers due to worldwide travel restrictions, and Boeing has struggled due to its faulty 737 Max, which recently returned to the skies after nearly two years following mass fatality crashes. In 2020, Boeing deliveries were down approximately 60%.
In June, Norwegian Air made the biggest cancellation ever of 92 737 Max jets and five 787 Dreamliners.
What’s Next: The production of this order will take place in Seattle and is set to be completed by May 21, 2024.
The Air Force will pay for the cost of the full fleet this year using its fiscal 2021 aircraft procurement funds.
BA Price Action: Boeing shares were down 2.05% at $207.12 at last check Thursday.
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