Shares of Boeing (BA) rose on Thursday after CEO Kelly Ortberg announced that the company will resume aircraft deliveries to China in the coming month.
The stock climbed to the highest since February 2024, topping an alternative buy point, as the company’s chief executive said production is climbing. A court setback for tariffs also seemed to help Boeing stock.
CEO Kelly Ortberg expects a “dynamic environment” until trade agreements are finalized. He added the company, which estimates a tariff impact of less than $500 million this year, faces a larger threat from retaliatory actions. China temporarily refused to accept Boeing jet deliveries in retaliation for U.S. tariffs. But deliveries are resuming next month, after the U.S. and China agreed to a truce.
Speaking at the Bernstein Strategic Decisions Conference, Ortberg stated, “The first deliveries will be next month,” citing that Chinese airlines have signaled readiness to accept new planes. His comments follow recent reports that China reversed a ban prohibiting its domestic airlines from receiving Boeing aircraft.
Ortberg also noted that Boeing has been paying tariffs on components imported from Italy and Japan used in aircraft manufacturing. However, those costs can be recovered once the completed planes are exported.
According to airline industry analysts at Visual Approach Analytics, Boeing stands to benefit from improving U.S.-China trade relations. If a current 90-day reduction in tariffs leads to a broader trade agreement, Boeing—one of America’s largest exporters—could be well-positioned, particularly given China’s growing demand for commercial aircraft.
In addition, Ortberg outlined plans to increase monthly production of the 737 Max to 42 units in the short term, and up to 47 by year-end. This ramp-up will require approval from the Federal Aviation Administration (FAA), which previously capped production at 38 jets per month due to safety concerns, including a recent incident where a door plug detached mid-flight.
Boeing shares gained over 3% in Thursday’s trading and are up 17% year-to-date in 2025.
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