Boeing CEO: Travel demand right now is 'substantial'
Boeing (BA) CEO David Calhoun is staying bullish despite fresh signs of a cooling in travel demand.
"The demand is significant — it's substantial," Calhoun told Yahoo Finance.
The comments come after United Airlines (UAL) warned late Monday of a slowdown in travel. United said it expects a first-quarter adjusted loss of $0.60 to $1.00 per share. Previously, it forecasted adjusted earnings of $0.50 to $1.00 per share.
United's rival Delta (DAL) backed its first-quarter guidance on Tuesday.
Part of Calhoun's optimism stems from a new deal with Saudi Arabia, as Yahoo Finance first reported today.
Boeing has secured an order for up to 121 787s from two Saudi Arabian airlines — state-owned Saudi Arabian Airlines and new national player Riyadh Air. A total of 78 planes are considered firm orders, while 43 are options to purchase more. Of the 121 orders, 72 are from Riyadh Air.
Based on the list price for the 787 of about $338 million, the deal could be worth up to an estimated $40 billion.
"It is significant," Calhoun told Yahoo Finance about the deal.
Boeing stock rose by 1.9% on Tuesday. Shares are up 8.8% year to date, outperforming the S&P 500's 2% advance.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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