China said to approve first Boeing 787 delivery since 2021

China has signed off on the first delivery of a Boeing Co. 787 jet since April 2021, 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 poised to fly its newest 787 Dreamliner from North America, taking off from Boeing’s Paine Field factory in Everett, Seattle, to Shanghai as soon as Thursday in the US, according to a person familiar with the matter.

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.”

Shares in Boeing jumped 2.02% in pre-market trading in the US.

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 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, the person added, asking not to be identified because they’re not authorized to speak publicly. The airline expects a second 787 to be delivered in March next year, they said.

Juneyao’s delivery would help the US planemaker edge closer to its annual 787 delivery target of between 70 to 80 jets. Through November, Boeing delivered 62 Dreamliner aircraft, the company’s delivery 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 at are designated for Chinese carriers, according to Jefferies.