Shares of Boeing Co. and Airbus SE rose modestly on Thursday afternoon after a news report indicated that Saudia, the national airline of Saudi Arabia, has opened preliminary discussions with both planemakers about a potential large-scale aircraft acquisition.
The stocks gained about 0.5% even as broader equity markets were trading lower, reflecting investor interest in the potential order despite overall market headwinds. According to the report, Saudia is exploring the purchase of at least 150 narrowbody and widebody aircraft, but has not made final decisions on specific models or the precise breakdown between narrowbody and widebody types.
At roughly 80 years old, the carrier is considering the purchase as a means both to replace portions of its existing fleet, which is roughly 200 aircraft in size, and to increase its total capacity. These early-stage conversations follow a string of sizable transactions by the airline: earlier in 2024 Saudia bought 105 Airbus narrowbody jets, and in 2023 it placed an order for more than three dozen Boeing 787 Dreamliners, with options for an additional 10 aircraft.
Market reaction to the report was contained - investors bid up shares of the two planemakers by a small amount even as other indices retreated. The discussions remain preliminary, and neither the airline nor the manufacturers have announced finalized deals or specific order tallies. As presented, the situation reflects early negotiations rather than binding agreements.
Context and implications
The potential transaction, if it moves beyond talks, would represent a substantial procurement for Saudia and could affect production planning and delivery schedules at both aerospace manufacturers. For now, the information available is limited to the scope of the reported discussions and Saudia’s stated intent to address fleet replacement and capacity expansion.
Observers should note the provisional nature of the talks: no models or exact quantities have been selected, and the discussions are described as early-stage.