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An Airbus A350-1000 passenger aircraft during a flying display at the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 18, 2025. REUTERS/Benoit Tessier Purchase Licensing Rights, opens new tab

PARIS/MANILA, July 10 (Reuters) - Philippine Airlines (PAL) is poised to order 15 Boeing (BA.N), opens new tab 787-10 aircraft and nine Airbus (AIR.PA), opens new tab ​A350-1000 jets, marking its first Boeing purchase in almost ‌20 years, industry sources said on Friday.

The orders are expected to be announced at the Farnborough Airshow this month. The decision to include the Boeing ​787 will automatically trigger a separate engine contest between ​Britain's Rolls-Royce (RR.L), opens new tab and U.S. giant GE Aerospace (GE.N), opens new tab.

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Airbus and Boeing ⁠declined to comment on commercial discussions.

Philippine Airlines said ​it could not provide information on potential fleet acquisitions.

The ​deal comes after the airline's president disclosed at an industry summit in June that the airline planned to order new planes in the next couple ​of months.

Bloomberg News reported earlier this week that the ​carrier had opted to split an order for about 20 planes between Airbus and ‌Boeing.

⁠PAL currently has a mixed wide-body fleet of predominantly previous-generation Airbus A330s and Boeing 777s as well as a handful of the newer A350s.

The 787-10 competes most directly with ​Airbus's upgraded A330neo ​model.

Following ⁠a global showdown over tariffs, Washington is seeking to narrow its trade deficit with the Philippines ​which stood at nearly $5 billion in 2024. ​The Philippines ⁠has pledged to increase imports from the United States.

At the same time, PAL is expanding as the country plans ⁠a new ​airport and last month announced plans ​to join the oneworld Alliance, ending its isolation from major airline groupings.

Reporting by ​Tim Hepher, Karen Lema Editing by David Goodman and Sharon Singleton

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Two recent incidents regarding a Boeing 737 MAX aircraft have put Boeing Co. NYSE: BA stock back in the spotlight, and not in a good way. Both incidents occurred on Southwest Airlines NYSE: LUV jets. The timing is notable, landing just as Boeing works to reassure investors that its production and quality-control issues are behind it.

Boeing Today

$223.46 -1.50 (-0.66%)

As of 10:06 AM Eastern

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52-Week Range$176.77▼

$254.35P/E Ratio108.36

Price Target$261.61

The first incident occurred on Southwest Flight WN139, which made an emergency return to Maui. The Boeing 737 MAX 8 was en route from Kahului to Las Vegas on July 5, 2026, when the crew reported a mechanical issue. Rather than continuing toward the mainland, the flight diverted to Honolulu.

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Passengers described a tense but orderly return, and the aircraft landed safely with no reported injuries. Southwest confirmed the diversion as a precaution, and the plane was inspected before returning to service.

A second, less-reported incident also involved a Southwest MAX 8. That flight, traveling between Denver and Dallas, diverted after the crew flagged a technical issue in mid-flight. Details are thinner, with limited official confirmation so far. Together, the two incidents highlight how quickly minor mechanical alerts can draw scrutiny, especially with a model still shadowed by its troubled history.

737 MAX Incidents Put Boeing Stock Back Under the MicroscopeThe company faced intense scrutiny after two fatal crashes involving the 737 MAX in 2018 and 2019, which led to a worldwide grounding of the aircraft. There's no indication that either recent event involved MCAS, the flight-control system tied to that earlier crisis.

This hasn’t turned into a sell-the-news event. BA is down only about 0.67% over the five days ending July 8. LUV is down about 3.01% over the same period. These new incidents, however, remind investors of the inherent risk in this sector.

One of those risks is the price of jet fuel, which is moving higher as U.S. President Donald Trump recently announced the U.S.-Iran ceasefire is over. For investors tracking BA and LUV, these incidents add a fresh variable to an already complex earnings picture heading into the back half of 2026.

Boeing's Production Recovery Still Faces Execution RisksBoeing's latest earnings paint a picture of a company gaining operational footing while still carrying real risk. Production discipline is the headline: 737 output has stabilized at 42 jets monthly, with plans to reach 47 this summer and eventually 52 once the new Everett North Line comes online.

Certification progress reinforces that momentum, with the 737-7/737-10 nearing final approval, the 777-9 advancing through FAA testing, and a supplier engine issue reportedly identified and being resolved. Higher MTOW approval on the 787-9/787-10 adds further flexibility.

Still, execution risk hasn't disappeared. A wiring nonconformance forced rework on 25 737s, pushing some deliveries into Q2. The 787 program faces its own delays, tied to seat certification and engine timing. Meanwhile, the Spirit AeroSystems integration remains a financial drag, expected to cost roughly $1 billion in cash this year.

Taken together, the stakes center on execution consistency. Boeing has a credible production ramp and certification runway ahead. That’s why the company can ill afford to deal with recurring quality lapses, particularly while integration costs threaten to undercut that progress. Investors will be watching whether operational discipline can outpace recurring one-off setbacks that still weigh on delivery timelines and cash flow.

Higher Fuel Prices Add Pressure to Airline StocksThe risk to Southwest and other airlines is not direct, but it’s nonetheless real.

Buyer behavior matters. Anecdotal evidence showed consumers actively sought out airlines and flights that didn’t use the 737 MAX after the 2018-2019 crashes. Southwest uses the 737 MAX extensively in its fleet, so the operational risk is real, albeit hard to quantify.

Southwest Airlines Today

LUV

Southwest Airlines

$49.47 +0.81 (+1.67%)

As of 10:06 AM Eastern

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52-Week Range$28.98▼

$55.11Dividend Yield1.46%

P/E Ratio31.89

Price Target$49.58

That risk comes at a time when energy prices are on the rise, which means higher jet fuel prices at a time when the consumer is weak. Overall travel demand, including airline demand, has remained solid so far, despite sticky inflation and higher-for-longer interest rates that affect consumers at multiple levels.

Airlines such as Delta NYSE: DAL, which cater to a premium consumer, may not feel the impact as much as Southwest, which relies on a more budget-conscious consumer. That said, while consumers have options, Southwest has significant equity built with its customer base.

Energy prices will be the bigger short-term story for all the airline stocks, including Southwest. And due to the FIFA World Cup, Southwest and other airlines are likely to post good numbers this earnings season. Adding to the bull case, analysts have been raising their price targets for LUV despite the incidents.

If the investigation doesn’t reveal a systemic issue with the 737 Max, investors can remove that risk from their assessments of Southwest and Boeing. But in two sectors where the margin of error is slim, investors may want to exercise caution in the short term.

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SummaryBoeing has launched a fourth 737 MAX assembly line in Everett, significantly expanding production capacity and supporting a multi-year ramp-up.The current 737 MAX backlog supports monthly production rates of 72–80 units, yet BA is producing at just 42, indicating strong latent demand.By 2035, 737 MAX program revenues could exceed $53 billion annually, with cumulative revenues boosted 10% by an accelerated ramp-up on the new line.The fourth line offers BA strategic flexibility—enabling either stress relief on existing lines or a faster, value-accretive ramp to meet demand and reduce debt.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Aeon Aviation Photography/iStock Editorial via Getty Images

As part of The Boeing Company's (BA) production ramp-up, Boeing has started operating its fourth 737 MAX assembly line in Everett, boosting the production capacity for the Boeing 737 MAX. The introduction

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Wisk Aero, the electric air taxi company owned by Boeing, has been hit with a lawsuit from a former employee, who claims she was fired after raising safety concerns.

Former software manager Briahna O’Neill sued Wisk in Santa Clara Superior Court earlier this week, alleging discrimination and wrongful termination. The Seattle Times first reported on the lawsuit, noting that Boeing declined to comment.

O’Neill said she filed two internal safety reports that outlined how Wisk had engineers reduce the amount of FAA-required software testing being done in order to hit a test flight deadline in 2025. O’Neill claims she was fired just weeks after filing the second complaint.

Founded in 2019, Wisk is one of a number of companies trying to develop commercially viable electric vertical takeoff and landing aircraft. It’s one of the few companies working on aiming for full autonomy. Wisk is also one of the eight companies that were approved earlier this year by the FAA to join a three-year program for testing such aircraft. Wisk said it cannot comment on ongoing litigation.

Key Takeaways Boeing's BDS unit generated $7.6B in Q1 revenues, up 21% year over year.Boeing booked $9B in defense orders and ended the period with an $86B backlog.Boeing expanded PAC-3 Seeker production and partnered with Rheinmetall on MQ-28 Ghost Bat. The Boeing Company’s (BA - Free Report) is best known for its commercial aircraft business, but its Defense, Space & Security ("BDS") segment could become an increasingly important contributor to future growth. As global defense budgets rise and military modernization efforts accelerate, Boeing appears well positioned to benefit from demand for advanced aircraft, autonomous systems, satellites, and defense technologies.

During the first quarter, the BDS unit generated $7.6 billion in revenues, up 21% year over year. While the segment has faced execution challenges in recent years, management continues to focus on improving operational performance and reducing costs across major defense programs.

The BDS unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft, which resulted in a solid backlog addition of $86 billion for the period ending March 2026.

During the aforementioned quarter, Boeing's defense business signed a seven-year framework agreement to expand PAC-3 Seeker production and announced a strategic partnership with Rheinmetall to offer the MQ-28 Ghost Bat to Germany. In April, Artemis II successfully completed its mission to the moon, propelled by the Boeing-built Space Launch System core stage rocket.

While commercial aviation remains Boeing's largest business, improving execution, expanding international opportunities, and progress across key defense programs suggest that the BDS segment could become a more meaningful growth driver in the years ahead. If management continues to improve program performance while securing new contracts, the defense business may play an increasingly important role in Boeing's long-term recovery and growth strategy.

Defense Contractors Benefiting From Military ModernizationRising geopolitical tensions, evolving security threats, and the need to replace aging military equipment are prompting governments across the world to increase defense spending and accelerate military modernization programs. These trends are creating significant growth opportunities for leading aerospace and defense companies. Several companies that are well positioned to benefit from these favorable industry dynamics are discussed below.

Lockheed Martin (LMT - Free Report) benefits from strong demand for advanced defense platforms, including the F-35 fighter jet, missile defense systems and space technologies.

RTX Corporation (RTX - Free Report) continues to secure defense contracts across missile systems, air defense solutions, and military aerospace programs, supported by rising global security spending.

BA Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 98.6% and 2,813.2%, respectively.

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BA Stock Trades at a DiscountIn terms of valuation, BA’s forward 12-month price-to-sales (P/S) is 1.74X, a discount to the industry’s average of 2.61X.

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BA Stock’s Price PerformanceIn the past three months, the company’s shares have risen 10.2% against the industry’s 4.4% decline.

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BA’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.