Boeing Stock Up After Qatar Airways Orders 210 Jets on Trump's Gulf Visit: Is it a Good Time to Buy?

US President Donald Trump inked multiple deals related to aviation, energy, defence, and technology worth over £182.78 billion ($243 billion) during his recent visit to Qatar.

As Trump faced backlash for his plan to accept a £300.9 million ($400 million) luxury jet from the Qatar government, he decided to announce a major deal for Boeing (NYSE: BA) to sell up to 210 planes to Qatar.

Boeing emerged as the winner of Trump's trade policy after Qatar Airways ordered 160 jetliners with an option to purchase an additional 50 more, marking the biggest deal for the company, which has been battling prolonged regulatory, safety, and labour challenges.

Firm orders for 130 Boeing 787 Dreamliners and a total of 30 777-9 aircraft were followed by Qatar Airways inking a deal with GE Aerospace, a unit of GE Electric (NYSE: GE), for over 400 engines to power the jets. The total plane deal is valued at an estimated £72.21 billion ($96 billion), according to the White House.

Boeing shares are up over 10% in the past five days and 1.25% during Thursday pre-market hours.

Boeing CEO Kelly Ortberg appeared alongside Trump at the Amiri Diwan in Doha to sign the deal.

'This is a critical next step for Qatar Airways on our path as we invest in the cleanest, youngest and most efficient fleet in global aviation,' said Qatar Airways CEO Badr Mohammed Al-Meer. 'This is so we can meet the strong demand in the airline as we seamlessly connect passengers to the world better than anyone.'

Turning Point for Boeing?

Qatar Airways' decision to select Boeing instead of Airbus could be linked to its frosty relationship with the latter. However, it wasn't the only deal Boeing secured recently.

Boeing's stock rally is driven by several factors, including China reportedly removing a ban on its airlines acquiring Boeing jets after striking a deal with the US government.

Furthermore, the Saudi Public Investment Fund's AviLease placed orders for up to 30 new single-aisle Boeing 737-8 aircraft. That's not all. The company also reportedly executed a deal with British Airways' parent company, IAG, to sell 30 787 Dreamliners.

In terms of business fundamentals, the company's Q1 core loss per share narrowed year-over-year to £0.37 ($0.49) from a loss of £0.85 ($1.13). Boeing's revenue also jumped 18% YoY to £14.66 billion ($19.49 billion) from £12.45 billion ($16.56 billion), driven by a 75% YoY jump in revenue from commercial aeroplane deliveries to £6.12 billion ($8.14 billion) from £3.49 billion ($4.65 billion).

Commercial aeroplane deliveries in Q1 were 130, up from 83 a year earlier, as 737 production increased and the 787 program stabilised. Meanwhile, the 777X program started expanded FAA certification flight testing during the quarter.

'Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality,' Ortberg had stated in the earnings release.

Overall, Boeing appears to be bouncing back as it prioritises safety and efficiency while ramping production for worldwide deliveries.

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