Boeing secures $3.75bn Air India order as recovery gains momentum
Order for 30 737 MAX jets extends carrier's total commitment to 250 aircraft amid record $682bn backlog
Boeing has secured an order for 30 additional 737 MAX aircraft from Air India, valued at approximately $3.75 billion at list prices, extending the Indian carrier's total commitment to the American aerospace manufacturer to 250 jets. The agreement, announced Wednesday, comprises 20 737-8s and 10 737-10s, bolstering Air India's single-aisle expansion strategy as it seeks to meet growing demand for domestic and regional air travel in India.
The deal adds to a landmark 2023 agreement for 220 aircraft and brings Boeing's total order book from the Tata Group-owned carrier to 250 jets. According to FlightGlobal, Air India has already received 52 Boeing aircraft, including 51 737 MAX 8s and one 787-9. The 737 MAX 8s will serve high-frequency domestic and short-haul international routes, while the larger 737 MAX 10s will increase seating capacity while maintaining fleet commonality to achieve cost efficiencies.
This latest commitment arrives as Boeing demonstrates strong operational recovery following years of challenges related to the 737 MAX grounding program and supply chain disruptions. The company reported a return to profitability in 2025 with GAAP net earnings of $2.2 billion, a dramatic turnaround from the $11.8 billion loss recorded in 2024. Commercial aircraft deliveries reached 600 units during the year, the highest annual total since 2018.
Boeing's commercial airplane backlog expanded to a record $567 billion by the end of 2025, encompassing over 6,100 aircraft. The company's total backlog across all segments reached $682 billion, providing substantial visibility for future revenue as production rates continue to normalize. Commercial airplane orders surged 107% year-over-year to 1,175 gross orders, enabling Boeing to surpass European rival Airbus in annual orders for the first time since 2018, according to industry data.
The 737 MAX program, which was grounded for 20 months following two fatal crashes in 2018 and 2019, has undergone extensive safety modifications. The Federal Aviation Administration lifted the grounding order in November 2020 after Boeing implemented enhancements to the Maneuvering Characteristics Augmentation System (MCAS), including redundant safety checks and updated software designed to mitigate single-point failure risks. The aircraft resumed commercial service in the U.S. in December 2020 and received recertification in Europe and Canada by January 2021.
Production rates have steadily recovered, with the 737 program now operating at 42 aircraft per month. Boeing aims to increase this rate to 47 by mid-2026 and to 52 by early 2027, supporting its target of approximately 500 737 MAX deliveries in 2026. However, certification challenges persist for the 737 MAX 7 and MAX 10 variants, which Boeing anticipates receiving in the second half of 2026.
Wall Street sentiment toward Boeing has strengthened amid the recovery, with 22 of 28 analysts rating the stock as Buy or Strong Buy, according to market data. The consensus target price stands at $258.04, representing potential upside from current levels. Boeing shares have traded in a 52-week range of $128.88 to $254.35, reflecting investor confidence in the company's turnaround trajectory despite recent market volatility.
The Air India order underscores Boeing's strengthening position in the strategically important Indian aviation market, which is projected to become the world's third-largest air travel market by the end of the decade. The carrier's aggressive fleet expansion, driven by strong passenger demand growth and competitive pressures, positions Boeing to benefit from one of the fastest-growing commercial aviation regions globally.
Boeing's 2025 performance laid "the foundation to keep our momentum going in the year ahead," according to chief executive Kelly Ortberg. The company completed the acquisition of Spirit AeroSystems in December 2025, a move aimed at enhancing quality control and production stability across its commercial aircraft programs. Despite headwinds including ongoing certification delays for the 777X program, with first deliveries now expected in 2027, analysts expect increased deliveries of 737 and 787 models to drive positive free cash flow in 2026.