Boeing: Oil Shock Hits Airlines, But Demand For Jets Won't Break

Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryBoeing saw March airplane orders drop year-on-year, but this reflects the timing of large deals rather than weakening demand.March deliveries fell sequentially to 46 units due to a 737 MAX wiring issue, not expected to impact full-year delivery targets.Year-to-date, BA delivered 143 airplanes (+10% YoY in value), with book-to-bill ratios indicating healthy demand and production pressure.Boeing is methodically ramping up 737 MAX production, prioritizing safety and quality, with the fourth line and MAX 10 certification in focus.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Kevin Burkholder/iStock Editorial via Getty Images Airlines are currently going through a tough patch as higher oil prices have increased costs and macro softening may soften demand. The reason, of course, is the situation in the Middle East. In a This article was written byDhierin Bechai23.53K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.