On Monday, Boeing Co. (BA, Financial) launched the new 777-8 Freighter and expanded its market-leading 777X and freighter families of jetliners with an order for up to 50 aircraft from one of the world's largest cargo carriers, Qatar Airways.
Qatar Airways will be the first 777-8 Freighter launch customer with a firm order for 34 jets and options for 16 more, a total purchase that would be worth more than $20 billion at current list prices and the largest freighter commitment in Boeing history by value, according to the press release. The order also supports hundreds of U.S. suppliers from across 38 states, will sustain more than 35,000 U.S. jobs and provide the American economy with an annual estimated economic benefit of $2.6 billion during the contract's delivery period.
Boeing finished trading on Monday at $200,24, a gain of 5.07%, or $9.67 per share, following the news. After hours, the stock price dipped to $199.95, down 0.14% from closing.
"Boeing has a long history of building market-leading freighter aircraft and Qatar Airways is honored to have the opportunity to be the launch customer for the 777-8 Freighter, an aircraft which will not only allow us to further enhance our product offering for our customers, but also help us meet our objectives to deliver a sustainable future for our business," said Qatar Airways' CEO, His Excellency Mr. Akbar Al Baker. "Today marks a great day in the ever-building and strong relationship between Qatar Airways and Boeing. We certainly push Boeing hard to deliver upon our expectations, and the team at Boeing consistently strives to meet and exceed our expectations, giving the opportunity for us to be here today to launch the most significant new freighter aircraft for a generation."
Al Baker reaffirmed the airline's commitment to the 777X family with the record-breaking 777-8 Freighter deal. The first delivery of the new freighter is anticipated in 2027.
Boeing is designing the 777-8 Freighter, the newest member of the 777X family, to maximize efficiency and environmental performance, the company said. The widebody family features engineering design improvements and innovative technologies, including a new carbon-fiber composite wing and new fuel-efficient engines. With a range of 4,410 nautical miles (8,167 km), the 777-8 Freighter has a maximum structural payload of 118 tons, allowing customers to make fewer stops and reduce landing fees on long-haul routes.
Boeing will build the 777-8 Freighter in its Everett, Washington factory. The company has invested more than $1 billion into the Everett site to support 777X production and sustain thousands of local jobs for decades to come.
On Jan. 27, Boeing and China Airlines (TPE:2610, Financial) also announced that China Airlines has ordered four 777 Freighters, adding to its extensive fleet of Boeing airplanes. Valued at $1.4 billion at list prices, the order will enable the airline to capture new market opportunities as global air cargo demand continues to grow.
The 777 Freighter is said to be the world's largest, most capable twin-engine Freighter. It has a range of 4,970 nautical miles (9,200 km) with a maximum revenue payload of 102 tons (224,900 pounds), while contributing to a 17% reduction in fuel use and CO2 emissions per ton compared to prior generation airplanes. In addition, the 777F will allow China Airlines to make fewer stops on long-haul routes, further reducing associated landing fees and resulting in the lowest trip cost of any large freighter.
