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Stock Analyst Update

Southwest Win Lifts Boeing

Deal for up to 290 jetliners solidifies aircraft maker's position.

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Boeing's (BA) huge order Thursday from Southwest Airlines (LUV) solidifies its dominant position in narrow-body commercial aircraft and materially improves the long-term prospects for Boeing shareholders.

Southwest has ordered 94 new 737-700s with options on 25 and purchase rights on an additional 171 over the next 12 years, making a total order of up to 290 aircraft. Southwest flies 737s exclusively, and by winning the order, Boeing will keep one of its best customers.

Richard Wilson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.