Qatar signs monumental aircraft contract with Boeing, heralding the company's recovery from recent challenges.

Qatar signs monumental aircraft contract with Boeing, heralding the company's recovery from recent challenges.

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In the halls of the grandiose Qatari Royal Court, Boeing Co., with the blessing of President Donald Trump, just secured its most significant aircraft order ever - a whopping $96 billion deal with Qatar Airways. This deal, witnessed by Trump and the Emir of Qatar, is a win-win-win situation for all parties involved.

Trump, well-known for his aggressive pursuit of commercial accords, is showing off his dealmaking prowess in the Persian Gulf. Qatar Airways, on the other hand, gets to strengthen its relationship with the United States, being one of the biggest supporters of American exports. And Boeing walks away with an extending its dominance in the region, known for being a major investor in their high-end jets.

The order consists of 130 787 Dreamliners and 30 777X aircraft, with an option for an additional 50 widebody aircraft of either type. The agreement also includes more than 400 engines, clinching GE Aerospace's largest-ever deal for widebody turbines.

Boeing CEO, Kelly Ortberg, gleefully stated, "With this historic Boeing aircraft order, we're not simply chasing scale, we're building strength."

The aircraft purchased will be built over the next decade. The deal held significant importance for Ortberg as he accompanied Trump on his tour through the region. Boeing also won a smaller $4.8 billion commitment for aircraft from Saudi Arabia’s sovereign wealth fund during Trump's first stop in Saudi Arabia on Tuesday.

The relationship between Trump and Ortberg hasn't always been smooth. Trump has criticized Boeing for delays in providing two new Air Force One presidential jets ordered during his first term in office. However, during this Barter, Trump heartily congratulated Ortberg, emphasizing the deal's potential to help maintain jobs at home.

The question of the delayed presidential plane loomed over Trump's trip, following his confirmation that he was contemplating accepting a Qatari-owned Boeing 747-8, transformed into a private jet. While Trump mentioned that the aircraft would be given to the US Defense Department as a temporary solution until the new Air Force One planes are built, the idea has ignited controversy in both political camps.

Ortberg stepped out of retirement last year to revive Boeing, which had faced a deep crisis due to a disastrous accident at the start of 2024 and sloppy work at a supplier. Since taking the reins, he's managed to mend the company's tattered balance sheet, settle a debilitating strike by workers, and set Boeing on a path to increase output of its all-important 737 Max and the 787 Dreamliner.

U.S. Response

Investors were thrilled with the accord in Doha, pushing Boeing shares up as much as 3.1% to their highest in 15 months. Although the trade tension between the US and China has left its mark on Boeing, the deal with Qatar Airways, following the thaw in trade relations, has significantly boosted investor confidence in Boeing's future, justifying its stock and bond prices.

Widespread aircraft has been increasingly in demand since the pandemic as global routes reopened, and airlines rush to revitalize their aging fleets. Qatar Airways, being a major player in the aviation industry, stands to benefit from substantial discounts for a large order, as aerospace companies often offer discounts for big contracts.

The airline's commitment to a large number of Boeing aircraft strongly tilts Qatar's favor towards the Boeing camp. However, Qatar has been considering a smaller number of the Airbus A350 aircraft, a potential deal that might be announced during the Paris Air Show in June. Qatar currently operates a mix fleet of jets from both manufacturers and operates more than 50 of the older Boeing 777 model that many carriers are keen to replace.

The deal in Doha underscores Boeing's vulnerability to the unpredictable presidency and its rapidly changing trade policies, while also reinforcing the manufacturer's exposure to both the positive and negative aspects of Trump's trade initiatives.

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