Boeing stock rises on Ryanair order of three hundred 737 Max planes

Yahoo Finance Live examines the details of Ryanair's $40 billion deal with airplane manufacturer Boeing.

Video transcript

- All right. Let's take a look at Boeing here closing the day in the green, up just about 2%. Ryanair saying that it plans to buy at least 150 737 MAX 10 planes from Boeing, also has the option to buy 150 more, so the potential total there for 300. The move puts a bridge over a long-running dispute over prices and delivery delays between Boeing and Ryanair. This is a boost that investors have been waiting for here from Boeing. Really signals here, Josh, in terms of the broader industry, the rebound that we've seen in travel. And so many of these airlines now looking to expand their fleet and replace some of those older plane models.

- They're using the planes more. They got more people on them, so they need new ones, right? And I think that's a great thing when you're Boeing and you're in that business of, obviously, building planes for these airlines that are getting more busy. Again, you see this really being important to Boeing's top-line growth right when you're talking about revenue and getting more demand. That's something the company has been bullish on going back to their earnings call two weeks ago. They feel very confident in demand.

The one thing that weighed on that stock, though, back a couple of weeks ago was the profit for the quarter and the overall profit outlook because Boeing has had some defect issues and supply chain issues that have impacted their deliveries. So that is something to watch moving forward, is can Boeing overcome that and continue to deliver planes and deliver them effectively as people keep ordering them.

- Yeah, exactly. Well, shares, at least for today, closing in the green, up just about 2%.