Boeing falls after Qantas 787 cancellation
NEW YORK (AP) — Shares of Boeing Co. fell on Thursday after the company lost an $8.5 billion order for 787s that were supposed to go to Qantas.
THE SPARK: Australia's Qantas Airways Ltd is canceling orders for 35 787-9s, although it kept orders for 15 of another version of the plane, as well as options and purchase rights. The airline reported a $257 million annual loss on Thursday, which it blamed on a higher fuel bill, strikes, and competition for international flights.
THE BACKGROUND: The cancellation is a big loss for Boeing. Those planes were worth $8.5 billion at list prices, although discounts mean that Qantas is certain to have paid less than that.
Boeing still has orders for more than 800 of the new 787s, which it began delivering almost a year ago. Customers are eager for the more fuel-efficient plane. But they've been frustrated by delays, and China Eastern canceled an order for 24 787s in October.
SHARE ACTION: Down $1.86, or 2.6 percent, to $70.94 in morning trading. Over the past year they've traded between $56.90 and $77.83.