China has approved the delivery of a Boeing (NYSE:BA) Co. 787 Dreamliner jet to Juneyao Airlines Co, according to Bloomberg News.
This marks the first such delivery since April 2021, signifying a potential easing of the strained trade relations between the United States and China, a factor that has contributed to global economic tensions.
Boeing (BA) stock rose 1.8% on this noteworthy development.
Juneyao Airlines Co., counted among China's major privately run carriers, is set to operate its newest 787 Dreamliner on flights originating from North America, the report added.
This development is seen as a positive signal for Boeing and reflects a potential thawing of tensions in the ongoing trade dynamics between the two economic giants.
“China deliveries would unlock near-term inventory and support upside to 50/mo beyond 2025/26,” analysts said in a note.
The analysts noted that Boeing has 250 built but undelivered MAX aircraft as of Q3 end. Out of this number, 85 are designated for China.
“China approval would unlock delivery of these aircraft, which we estimate amounts to approximately $2.5bn of inventory, and would likely be faster and incur less expense than remarketing those planes,” the analysts added.
Boeing shares are up 36.6% year-to-date.