Shares of Boeing (BA -0.19%) stock lifted off on Tuesday. As of 11:55 a.m. ET the aerospace giant's shares are up a solid 5.5%.
And you can thank United Parcel Service (UPS 0.42%) for that.
This morning Boeing announced it has signed a "multi-year agreement" with UPS "to ensure a modern, efficient fleet" by selling the package shipping titan 19 of its model 767 air freighters. Boeing plans to deliver the 19 aircraft to UPS between 2023 and 2025.
No price was named for the purchase, but according to Boeing's official price sheet, a single 767-33 freighter retails for $220.3 million, implying the deal could be worth nearly $4.2 billion at list prices. (Although to be fair, it's well known that almost no one ever pays list prices for airplanes.)
However much this deal eventually nets for Boeing, however, some sales are certainly better than no sales -- not that Boeing is having much difficulty selling airplanes right now.
"2021 air cargo demand has surged due to an expansion of e-commerce and express cargo markets," noted the company in its press release. And after nearly two straight years of pandemic-depressed airplane sales, Boeing has already booked "80 firm orders for new widebody freighters and more than 80 orders for Boeing Converted Freighters" year to date.
Going forward, Boeing anticipates that air freight volumes will grow 4% annually on average over the next 20 years, leading to a 70% increase in the number of air freighters flying between now and 2040. With each incremental sale bringing in (up to) $220 million in revenue, investors seem pleased to see Boeing capitalizing on the opportunity today.