Boeing Loses Qatar Airways Order Amid 777X Testing Advances

SEATTLE, Wash. — Boeing faced a setback as Qatar Airways has reportedly canceled its order for 50 737 Max 10 jets, opting instead for Airbus aircraft. This news comes after speculation that the cancellation was likely due to the jet’s lack of certification.

Qatar Airways initially placed the order in 2022, which included 25 firm orders and an option for 25 more jets. As the 737 Max 10 remains uncertified, the airline’s decision does not come as a surprise. Boeing’s stock dipped only slightly on Tuesday afternoon, reflecting limited immediate concern among investors.

The cancellation had been rumored for some time but became official this week. However, Qatar Airways has maintained its commitment to Boeing by ordering up to 210 jets from the 787 and 777X series.

Qatar Airways is currently turning its focus to the Airbus A321neo as a replacement. Meanwhile, in potentially brighter news for Boeing, the company is overcoming an issue that halted testing for the 777X. The problem stemmed from engine thrust links, which Boeing has now addressed with redesigned models.

The 777X has experienced multiple delays, first pushed back in 2020 due to an “uncommanded pitch event” that affected flight control. Certification could still be years away, but if successful, the 777X could enter service in 2026, still over six years behind schedule.

Despite these challenges, Boeing’s stock holds a Moderate Buy consensus among analysts, based on 15 Buy recommendations, four Holds, and one Sell over the past three months. Following a 15.58% increase in the past year, the stock price is currently set at $213.37 per share, indicating a potential upside of 5.77%.