03.06.2020 Boeing Daily Analysis

03.06.2020 Boeing Daily Analysis

Boeing today is trading at $153.31, it is trading higher with $1.92 mainly because TUI Group, which is Europe's biggest travel company announced that it had struck a deal with aircraft maker Boeing for compensation and slower delivery of the 737 MAX plane, helping its finances during the coronavirus pandemic. The Germany-based company said in a statement on Wednesday that Boeing would provide it with compensation for a significant portion of the financial impact of the grounding of the plane, which had hit its earnings over the last year. Boeing will also provide it with credits for future orders and agreed that TUI will get fewer 737 MAX aircraft over the next few years with deliveries delayed by about two years, reducing TUI's expenditure at a time when cash is tight. The company said the agreement with Boeing would help it shrink its airline businesses over the coming years, something it wants to do amid forecasts that the travel market will take several years to recover from the pandemic.