Can Boeing's Commercial Aircraft Business Sustain Growth?
The Boeing CompanyBA is seeing steady progress in its commercial airplane segment, driven by rising demand for aircraft amid growing global air traffic, encouraging airlines to expand their fleet significantly. Resultantly, Boeing’s commercial jets are witnessing strong traction, buoyed by increased delivery figures for its 737-product line, in particular, which is bolstering the commercial segment’s top line.
In the first quarter of 2026, Boeing’s commercial aircraft deliveries improved 10% year over year, primarily driven by 8.6% growth in 737 deliveries.
Looking ahead, a strong order pipeline should continue to support the growth of Boeing’s commercial airplane business. In February 2026, the company secured several key contracts that highlight this momentum.
Boeing has secured an order from Vietnam Airlines for 50 aircraft of the 737 MAX model. This will support the airline’s domestic and regional expansion plans amid rising travel demand in Southeast Asia.
The company also finalized a deal with Air Astana for up to 15 jets of its 787 Dreamliner model. This marks the airline’s largest aircraft purchase and is expected to strengthen its long-haul operations and improve passenger experience.
Moreover, Sun PhuQuoc Airways ordered up to 40 aircraft of its 787 Dreamliner model. These jets will help the airline expand its international network and build a strong widebody fleet around the Vietnam hub.
Overall, backed by strong demand, rising deliveries and a solid order pipeline, Boeing’s commercial aircraft business is well-positioned to sustain its growth momentum.
Industry Peers Gaining From Rising Air Travel
Apart from Boeing, other aircraft manufacturers like Airbus SEEADSY and Embraer SAEMBJ are also benefiting from rising global air travel, which is driving strong contract activity and improving their order pipelines.
In March 2026, Airbus signed a major agreement with AerCap Holdings N.V. for 100 A320neo family aircraft, including both A320neo and A321neo jets. This deal highlights continued demand for fuel-efficient narrowbody aircraft and supports Airbus’ long-term growth.
Similarly, Embraer entered into an agreement with Finnair for up to 46 E195-E2 aircraft, including firm orders, options and purchase rights. These aircraft will replace older jets and help Finnair improve efficiency and expand its operations.
The Zacks Rundown for BA
Shares of Boeing have risen 40.2% in the past year compared with the Zacks aerospace-defense industry’s growth of 30.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, BA is currently trading at a forward 12-month sales multiple of 1.74X, a discount when stacked up with the industry average of 2.49X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BA’s 2026 earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
BA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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