Boeing Gains As Southwest Order Shows 737 Max May Regain Lost Ground

Boeing (NYSE:BA) shares were up nearly 3% in Monday’s premarket as a fresh order from Southwest Airlines (NYSE:LUV) for 100 of its 737 MAX 7 planes bolstered hopes that the troubled model still has a future.

The airline also converted 70 MAX 8 firm orders to the MAX 7 and added options for another 155 MAX 7 or MAX 8 aircraft for the years 2022 through 2029.

Two accidents during 2018-2019 forced regulators to ground the 737 MAX, which was at the time Boeing’s biggest moneyspinner, in a booming market for narrow body planes.

The plane was still grounded when Boeing had to contend with the pandemic too, leading air travel to collapse in 2020.

The new year has brought some relief to the manufacturer as it booked a United Airlines order for 25 737 MAX aircraft in February. On March 12. the company said it had got an order from private investment firm 777 Partners for 24 of the airplanes, potentially rising by another 60.