Boeing Company ( BA ) shares are trading higher premarket Thursday. The company disclosed that EL AL Israel Airlines has finalized a deal for up to 31 737 MAX jets.

El Al Israel Airlines inked a deal valued at up to $2.5 billion, reported Reuters.

The Israeli flag carrier is supporting its fleet renewal plans for Next-Generation 737 aircraft.

The 737 MAX family will enable EL AL to achieve the best per-seat economics in its class, enhance environmental performance, and improve passenger comfort.

Specifically, the 737 MAX will reduce fuel consumption and emissions by 20% compared to the planes it replaces and have a 50% smaller noise footprint.

EL AL’s 737 MAX order comes after its earlier purchase of three additional 787-9 airplanes, with options for six more, as it continues to expand its 787 Dreamliner fleet.

The airline will receive a new 787-9 this year and plans to take delivery of two more leased 787-9s in the coming years.

Stephanie Pope, president and CEO of Boeing Commercial Airplanes, said, “We know EL AL depends on the versatility and reliability of Boeing ( BA ) airplanes, and we look forward to delivering the 737 MAX and 787 Dreamliner jets that will reshape and grow the airline in the coming decades.”

Read: Moody’s, S&P Cast Doubt on Boeing’s 737 MAX Target: Report

Dina Ben-Tal Ganancia, CEO of EL AL Israel Airlines, said, “EL AL has a central role in ensuring open skies for Israel. The implementation of our strategic plan – which aims to expand the fleet, increase the value proposition for customers and increase capacity and seating – will ensure a strong and growing company for many years to come.”

Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ( ITA ) and Gabelli Commercial Aerospace and Defense ETF ( GCAD ) .

Also Read: NTSB Calls Out Boeing For Safety Lapses: FAA Steps Up Scrutiny

Price Action: BA shares are up 0.36% at $168.30 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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