Here are the average prices of Boeing’s top 5 commercial jets

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Boeing (NYSE: BA) is well known for its very popular 737, as well as its 747, first introduced in 1970, and its 787 Dreamliner. But there’s also a new 400-seat plane – the 777X – that’s still on the drawing board, and it’s set to become the best-selling plane on the market after its first delivery in 2020.

Investors applaud when Boeing beats rival Airbus for lucrative deals because it generates more revenue and higher profits. At the Paris Air Show last month, Boeing Crashed airbus by announcing commitments for 437 new planes against only 182 for its rival.

Image source: Boeing.

Big things, small packages

The big seller was the 737 MAX family of aircraft, which received 418 commitments from buyers, mainly for the new 737 MAX 10, although Boeing also received 125 commitments for the 737 MAX 8. The rest of the commitments concerned the 787 Dreamliner.

Controls for the iconic 747 have been particularly absent, highlighting the reason Boeing is phasing out the aircraft.

In its latest “Current Market Outlook,” which forecasts industry demand through 2036, Boeing removed a separate demand for the very large aircraft that previously contained the 747, choosing instead to merge it into a combined category ” large body medium / large passengers ”.

Boeing says planes don’t sell (Airbus says the same for its A380 plane) because few carriers have the capabilities and routes to handle planes over 400 seats. The 747 is a 400-seat aircraft, but can be configured to cram up to 660 passengers into a single aircraft. In fact, Boeing only has 23,747 in its aircraft order book, the smallest of all its aircraft, and it only produces one aircraft every two months. Obviously he’s not spending a lot of resources on it.

Air Force One

Air Force One is a Boeing 747. Image source: US Air Force.

Fly in the turbulence

Airbus has been cited as mocking Boeing’s decision to abandon the market. “They would do that,” Airbus sales director John Leahy said, according to IndustryWeek. “The 747-8 is not selling. We have no intention of sharing that market with them.” Airbus said it remains committed to producing very large planes due to increased passenger traffic and congestion on the roads.

This could still be a silly position to take as Airbus did not sell a single A380 last year, and Boeing doubts it will be able to sell the remaining 107 planes that Airbus has in its order book. Indeed, Airbus is struggling to keep production of the model from 550 seats to one per month, and its biggest contract in Paris was for 100 single-aisle A320neo jets (short for “new engine option”).

This is where Boeing sees most of the market move. In his long-term forecast, he predicts that single-aisle jets will account for 72% of all aircraft deliveries in 2036, valued at $ 6.1 trillion.

Launch the production

Boeing plans to capture more than its share of this market. It produces 42,737 per month and has an order book of 4,500 orders, making it the most requested aircraft in Boeing’s fleet. Even though these are the cheapest planes Boeing produces, it makes up for in volume what it forgoes in price. Unsurprisingly, the 747 is one of its most expensive planes (though not the most expensive), but with few sales no matter what they cost.

Below are the production rates for each family of aircraft produced by Boeing, its order backlog, and the average price for each family of aircraft.

Aircraft family

Production rate (per month)

Back

Average price

Remarks

737

42

4,506

$ 103.4 million

Plan to increase to 47 / month in Q317

Plan to increase to 52 / month in 2018

Plan to increase to 57 / month in 2019

747

0.5

23

$ 387.2 million

767

2

106

$ 202.6 million

Plan to increase to 2.5 / month in Q317

777

7

124

$ 344.2 million

Plan to decrease to 5 / month in August 2017

787

12

679

$ 270.9 million

Plan to upgrade to 14 / month by the end of the decade

Data source: Boeing.

As stated, the 737 is the cheapest of its devices, the 737-700 costs only $ 82.4 million. The most expensive? The 777-9, which sells for $ 408.8 million.

The needs of the airline industry are not static, but dynamic, as evidenced by Boeing’s outlook, which forecasts 4,200 fewer planes than suggested in last year’s report. The number of single-aisle jets required is also lower.

One thing that doesn’t change? Boeing’s leadership role in delivering the latest and most technologically advanced aircraft to the market.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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