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.
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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.
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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%