Dubai-based airline Emirates has finalized a commitment to purchase 150 777X passenger jets from Boeing Co. (NYSE: BA) for a list price total of $56 billion. The airline also has acquired rights to an additional 50 airplanes, which would increase the value of the order to around $76 billion.
The order has been on Boeing’s books since November’s Dubai Airshow, when the company took orders for a total of 259 of the planes that are not expected to go into service until 2020. In addition to the Emirates order, Qatar Airways ordered 50 and UAE-based Etihad ordered 25. The 777X was specially designed to take into account the wishes of Middle Eastern carriers for planes capable of handling extreme high temperatures and flying long distances.
The Farnborough International Airshow in the United Kingdom, which is scheduled to begin July 19, will likely see Boeing, Airbus and smaller aircraft manufacturers announcing billions of dollars in new orders.
Emirates cancelled an order for 70 Airbus A350s that would have been worth nearly $22 billion to Airbus at list prices. The A350 is on track for first deliveries later this year, and Emirates had been scheduled to receive its first A350 in 2019. Emirates has shifted its interest in Airbus aircraft to the larger A380, of which it has received 48 so far out of a total order of 140 planes. Emirates is Airbus’s largest customer for the A380, with more than half of all the orders the firm has taken for the plane.
This latest confirmation of the Emirates order has already been baked into Boeing’s stock price. Shares are down about 0.5% at the noon hour Wednesday, as investors still try to figure out the impact of a shutdown of the U.S. Export-Import Bank on the company. The stock was trading at around $126.12, in a 52-week range of $98.99 to $144.57.