Boeing (BA +2.6%) topped Monday’s Dow Jones charts and airline stocks post large gains as a ‘back to normal’ trade lifts investor feeling, with an added boost from the $6.6 billion merger proposal from Spirit Airlines (TO SAVE +17.2%) with Frontier Airlines (ULCC +3.5%), the airline industry’s first merger since 2016.
Also: AAL +5%LAU +3.8%JBLU +3.6%ALK +3.5%DAL +2.7%LUV +2.1%.
Boeing may have been helped by new policies proposed by the Federal Aviation Administration that would protect employees of aircraft manufacturers who act on behalf of the federal government to review safety from corporate pressure.
Separately, Boeing announced a supply agreement for 2 million gallons of sustainable aviation fuel blended with EPIC Fuels to power its commercial aircraft operations.
The stock was apparently unaffected by a somewhat negative rating from Citi analyst Charles Armitage, who said Boeing would likely only capture 40-45% of the large commercial jet market in the future, at behind its rival Airbus.
“Our long-term forecast suggests that Boeing has lost its [two] decade ~50% commercial airliner market share,” Armitage wrote as he maintained his Hold rating and cut his stock price target to $219 from $238.
The FAA last week proposed revisions to airline pilot training that would prevent overreliance on autopilot.