BA to Invest $1 Billion to Raise 787 Dreamliner Production Rate

The Boeing Company BA recently announced plans to invest $1 billion to expand its plant in Charleston County, SC. The expansion aims to double the production volume of 787 Dreamliners to 10 units per month from the current levels by 2026.The facility has been running since 2009 and is crucial for making and delivering the 787 Dreamliner. The expansion is expected to be ready by early 2027.Importance of BA’s 787 DreamlinerThe Boeing 787 Dreamliner family has unparalleled fuel efficiency and range flexibility. The airplane’s lightweight and strong composite structure helps cut fuel use and emissions by 25%. Its flexible range allows airlines to start new routes profitably.The 787 family has enabled various airliners to operate more than 410 new nonstop routes since it entered commercial service in 2021. 787 Dreamliners carried more than 900 million passengers on more than 4.5 million flights. The jet offers passengers comfort, a spacious cabin, adjustable LED lighting, the largest windows and improved air quality.Growth Prospects for BA StockRising air passenger traffic and the increasing demand for fuel-efficient and modern aircraft are driving growth in the commercial aviation market. Tourism heavily relies on air travel, with more than half of cross-border travelers using airplanes. Airlines are increasingly prioritizing advanced models with improved fuel efficiency and range, further boosting market growth.This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of more than 6.7% for the global commercial aviation market during the 2024-2030 time period.Such solid market prospects offer growth opportunities for Boeing. The company has more than 10,000 jetliners in service worldwide. Boeing’s commercial airplanes backlog of more than 5,400 airplane valued at $427.73 billion indicates the increasing demand for new fuel-efficient airplanes.Opportunities for Other Defense StocksOther defense companies that are expected to enjoy the perks of the expanding global commercial aviation market have been discussed below.Airbus SE EADSY: It has more than 12,000 aircraft in service worldwide. Airbus provides modern, fuel-efficient aircraft that help airlines reduce their carbon footprint. The company’s portfolio includes the A220 Family, A320 Family and A380 aircraft.The company has a long-term (three to five years) earnings growth rate of 9.2%. The Zacks Consensus Estimate for EADSY’s 2024 sales indicates year-over-year growth of 5.1%.General Dynamics Corporation GD: It is a renowned producer of business jets and provider of aircraft repair, support and completion services. It is known for its superior aircraft design, performance, safety and reliability. The company’s portfolio includes the G400, G800 and G650ER.The company’s long-term earnings growth rate is 11.7%. The consensus estimate for GD’s 2024 sales indicates year-over-year growth of 13.2%.Textron, Inc. TXT: Its unit Cessna offers a range of aircraft for the commercial market, including business jets, turboprops and piston-engine aircraft. Cessna’s aircraft are used for various purposes, from business travel to surveillance and inspection. Some of its products include the Garmin G3000 Prime, Citation Longitude and Citation CJ4 Gen3.TXT boasts a long-term earnings growth rate of 10.1%. The Zacks Consensus Estimate for TXT’s 2024 sales indicates year-over-year growth of 1.1%.BA Stock’s Price MovementShares of BA have gained 19.3% in the past month against the industry’s 0.4% decline.Image Source: Zacks Investment ResearchBA’s Zacks RankBA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks