Boeing poised for first Dreamliner delivery to China since 2019

China has signed off on the first direct delivery of a Boeing Co. 787 jet in four years, an indication strained US-China trade relations may be easing and a potential precursor to the more significant resumption of 737 Max deliveries.

Juneyao Airlines Co., one of China’s largest privately run carriers, is preparing to fly out its newest 787 Dreamliner, in a potential breakthrough for the US planemaker. The jet is expected to take off for Shanghai from Boeing’s factory in Everett, Washington, at about 10 am local time, according to flight plan details on FlightRadar24.

The expected delivery will mark a breakthrough for Boeing, which has been largely shut out of China’s aviation market this decade. The US manufacturer hasn’t handed over any of its 737 Max or Dreamliners directly from its factories to the People’s Republic since 2019. The last new 787 to leave for China was via a US lessor in 2021.

A spokesperson for Juneyao declined to comment. Boeing said it continues to support its customers in China and “will be ready to deliver for our customers when that time comes.”

Boeing rose as much as 2.8% Thursday. The stock has soared 47% since the end of October on signs the industrial titan is starting to speed up deliveries of its two main cash cow planes.

The development comes as Boeing and all Chinese airlines wait for Beijing to allow 737 Max deliveries for the first time in almost five years. That model of jet was grounded globally in 2019 after two fatal crashes. Jefferies LLC has said it expects 737 Max deliveries to Asia’s biggest economy to happen after the 787 delivery.

“There are clear regulatory and political hurdles to overcome but the resumption of deliveries appears to be nearing,” Jefferies analyst Sheila Kahyaoglu wrote in a Dec. 19 note. Another 787 destined for China Eastern Airlines Corp. is also being prepared, evidence that the Juneyao delivery isn’t a one-off event.

The jet, registered B-20EQ, is expected to arrive in Juneyao’s home base of Shanghai in the afternoon of Dec. 22.

Juneyao’s delivery would help the US planemaker edge closer to its annual 787 delivery target of 70 to 80 jets. Through November, Boeing delivered 62 Dreamliner aircraft, its data show.

The resumption of 787 deliveries to China will also help Boeing winnow its inventory of already built Dreamliners, a move that would bolster cash for the planemaker. About 12 of the 75 undelivered widebodies in Boeing storage lots are designated for Chinese carriers, according to Jefferies.