The
civil aviation industry has been under a cloud for a while now, as airlines
operators battle high fuel costs and a global slowdown puts the brakes on
corporate travel.
To
add to that aircraft manufacturer The Boeing Company (NYSE:BA) on Tuesday said
that it was raising the prices of its commercial jetliners by about 6 percent.
What Affect It
Will Have On BA’s Earnings, Get Complete Analysis
Boeing
put up the new price catalogue on Tuesday which showed that it is raising the
prices by 5.6 percent on average for most of its planes and by about 7 percent
for its Dreamliners.
The
company said it was raising the prices due to higher wage and other costs. It
factored in data from employment cost index and the industrial commodities
index.
Sticker
prices for aircrafts do not really mean anything much as airlines making bulk
orders get large discounts from manufacturers.
Boeing's
737-700s cost about $74.8 million while the 747 jumbo jets are for $350
million. The Dreamliners, which started deliveries last year, are priced at
$206.8 million and $243.6 million for its two versions.
The
list price of Boeing's 737 Max, which the company promises will be more
fuel-efficient than current models of the popular single-aisle jetliner, ranges
from $82 million to $107.3 million, depending on size.
How Should
Investors Trade BA Now? Find Out Here
Boeing
and Europe's Airbus between them have a commanding share of the aircraft
market.
Boeing
reported earnings per share rose of $1.27 for its second quarter reflecting
strong core operating performance.
Revenue
grew to $20.0 billion on increased commercial airplane deliveries, while order
backlog stood at $374 billion, including $13 billion of new orders.
For
2012 the company raised its EPS guidance to between $4.40 and $4.60.
Shares
of BA rose 0.04% to $74.49.
Shares
of Rockwell Collins, Inc.(NYSE:COL) was up 0.12% to $51, General Dynamics
Corporation(NYSE:GD) fell 0.08%
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