Boeing Company ( BA ) shares are trading higher on Tuesday after the company disclosed that Saudi Arabia-based AviLease placed its first direct order for the purchase of 20 737-8 jets, along with options for an additional 10 aircraft.

This agreement allows AviLease to expand its increasing fleet and offer its airline clients access to the newest, fuel-efficient aircraft models.

This single-aisle aircraft order supports the Kingdom of Saudi Arabia’s strategic vision to become a global center for aviation.

These airplanes is expected to contribute to the nation’s objective of accommodating 330 million passengers and attracting 150 million visitors each year by 2030.

Edward O’Byrne, CEO of AviLease added, “Building on our recently achieved investment grade ratings, this transaction proves our ability to transact across all market channels, including sale and lease-back, secondary trading, M&A and now direct OEM purchasing. These new aircraft will accelerate our growth and enable us to deliver the industry’s latest generation, fuel–efficient fleet solutions.”

Last week, Boeing ( BA ) shares rose after Taiwan’s China Airlines ordered 14 of the fuel-efficient 777X aircraft, becoming the first in Taiwan to do so. The airline plans to use them for long-haul routes to North America and Europe.

In the first quarter, the company booked 221 net orders and delivered 130 commercial airplanes, with a backlog of over 5,600 planes valued at $460 billion.

Moreover, the company’s shares got a boost from a landmark trade agreement between the U.S. and the U.K. signed last week, in which the U.K. pledged to purchase $10 billion worth of Boeing ( BA ) aircraft, fueling investor optimism about Boeing’s international order pipeline and overall revenue outlook.

Investors can gain exposure to the stock via the iShares U.S. Aerospace & Defense ETF and Direxion Daily BA Bull 2X Shares .

Price Action: BA shares are trading higher by 3.07% at $204.63 at the last check on Tuesday.

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