“Trustful Partners” Boeing Stock (NYSE:BA) Slides as European Relations Improve

Aerospace stock Boeing (BA) is not exactly on good terms with Europe. After all, its primary competitor, Airbus (EADSY), is a European firm. But even with this competitive aspect being the case, Boeing and the European Union Aviation Safety Agency (EASA) are still on good terms. Some even believe their relationship is improving. This did little for Boeing shareholders, though, who sent shares down over 2% in Friday afternoon’s trading.

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Basically, reports noted that the EASA believes that relations are improving between itself and Boeing, and also between itself and the Federal Aviation Administration (FAA) in the United States. The EASA had some issues with both after a set of fatal crashes back in 2018 and 2019, reports noted, that featured a combination of weak oversight and software failures.

But the EASA has been keeping track of Boeing’s rebuilding, and with the FAA alongside it. Now, the EASA believes, things are much better. Florian Guillermet, the executive director of the EASA, noted, “Very honestly and transparently, I think it has improved quite a lot. We are working now as trustful partners. We are in a phase where we are trusting the FAA to do the right things, and I have no indication today that they are not taking care of their homework and that Boeing … is not reacting appropriately.”

Domestic Instability

Even as Boeing gained ground in Europe, it lost ground in the United States. Delta Air Lines (DAL) recently revealed that, when it shuts down its fleet of Boeing 717 aircraft, it will be replacing them not with other Boeing craft, but with Airbus craft instead.

Delta was one of just two airlines that flew 717s, with the second being Hawaiian Airlines. Typically, Delta used the 717s for short hops, and thus, decided that the Airbus A220 would be the better choice for these shorter runs once it phases out the 717 fleet. In fact, Delta had already started replacing the 717 lineup with A220s back in 2020. But since the A220s are delayed in their arrival, Delta is instead sticking with the 717s, for now.

Is Boeing a Good Stock to Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 13 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 12.15% rally in its share price over the past year, the average BA price target of $280.27 per share implies 47.66% upside potential.

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