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Investing.com — Boeing Co (NYSE:BA) shares have been given a welcome boost Tuesday, rising 5% on news that it has received an order for 19 767 freighters from package delivery company United Parcel Service Inc (NYSE:UPS).
Boeing shares are trading around the $198.21 mark. However, they are down over 7.5% in 2021. UPS shares are currently up over 2.5%.
Boeing said the order has come because of rising air cargo demand, resulting from an expansion of the e-commerce and express cargo markets.
Despite Boeing’s struggles since the start of the pandemic, freighter sales have been positive in 2021, resulting in a record-breaking year, including 80 firm orders for new widebody freighters and over 80 orders for Boeing Converted Freighters. In contrast, UPS’ business and its stock price have benefitted significantly from the pandemic, with restrictions causing an increase in online shopping.
“Our plan to purchase 19 aircraft and take delivery between 2023 and 2025 aligns with the strategy and capital expenditure forecast shared during our June 2021 Investor and Analyst Day. It also supports our sustainability efforts by making our fleet more efficient and improving reliability,” said UPS U.S. Operations President Nando Cesarone.
