Al Root

Boeing stock rose modestly as the U.K.'s International Consolidated Airlines Group ordered more planes.

IAG, which includes British Airways, Iberia, and other brands, reported its first-quarter 2025 results on Friday. Operating profit landed at $263 million, while Wall Street was looking for $177 million, according to FactSet.

Along with the results, IAG said it would buy 53 more planes from Boeing and Airbus, including 21 Airbus A330-900 neos and 32 Boeing 787-10. These are wide-body jets with two aisles, listing for upward of $250 million each, though airlines rarely pay list prices. They don't disclose the prices they pay.

IAG says about two-thirds of the jets are for replacement and one-third are for growth. IAG flies a mix of Boeing and Airbus jets, including Airbus A320, A321, A330, and A350 planes, as well as Boeing 777 and 787 jets.

IAG stock was up 2.1% in overseas trading. Airbus stock gained 0.2%. Boeing shares were up 0.6% in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.3% and 0.2%, respectively.

Boeing and Airbus stocks don't always react to order announcements; orders are a regular part of doing business, and both companies have enormous backlogs of planes to build. Boeing has about 6,300 unfilled orders for new jets, while Airbus has about 8,700.

Boeing shares got a boost on Thursday after President Donald Trump said via Truth Social that the trade deal with the U.K. would mean $10 billion in new orders for the company.

While plane purchases are a good thing, the bigger factor behind Thursday's 3.3% gain was that the deal with the U.K. signifies more agreements could follow. Boeing is a significant exporter -- almost half of its revenue in 2024 was generated outside the U.S. -- so it needs overseas markets to thrive.

Tariffs and retaliatory tariffs have the potential to reduce demand and shift market share to Airbus, which doesn't face the same trade barriers. Chinese airlines, facing import tariffs north of 100%, recently turned away some Boeing deliveries.

Coming into Friday trading, Boeing stock was up 8% year to date and up 27% since the Nov. 5 presidential election. Trade has been only one factor affecting Boeing's stock. The company is still trying to improve quality and build more planes. It hasn't reported a full-year profit since 2018.

Write to Al Root at allen.root@dowjones.com

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May 09, 2025 09:15 ET (13:15 GMT)

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