Boeing (NYSE: BA) shares saw an impressive rise of 13.9% in December, according to S&P Global Market Intelligence. This increase offers a glimmer of hope for the company after a challenging year and stems from some encouraging developments for Boeing.

Boeing’s December Surge: A Bright Spot Amid Challenges

Positive Developments Fueling Boeing’s Comeback

A crucial factor in Boeing’s recovery is the increase in 737 MAX production. The company aims to restore its defense sector to profitability and stay on schedule for the 777X’s first delivery in 2026. However, for Boeing to thrive, a boost in the production and delivery rates of the 737 MAX is essential.

In December, Boeing announced promising news. The company resumed production of the 737 MAX early in the month, following a damaging strike related to a new labor contract.

Additionally, Boeing secured a major order from Pegasus Airlines for 100 Boeing 737 MAX airplanes, with an option to order 100 more. This order enhances Boeing’s multiyear backlog and reassures investors that airlines remain interested in placing substantial orders despite ongoing production and delivery challenges.

Concerns lingered about potential order delays or cancellations from airlines adjusting their fleets due to these delivery delays. However, the order from Pegasus helps to alleviate those fears.

Looking Ahead: Boeing’s Path to 2025

Boeing encountered a tough year, starting 2024 with a significant incident involving an Alaska Airlines flight where a door plug malfunctioned on a 737 MAX. This incident forced management to temporarily slow production and introduce safety and quality measures. Later in the year, a strike by Boeing workers over new contract terms added to the company’s challenges.

Image source: Getty Images.

Despite these setbacks, the positive updates in December bring renewed optimism about Boeing’s ability to reach its target of 38 monthly deliveries of the 737 MAX and potentially increase that number. Boosting airplane production is vital for revenue and profit margin growth, allowing Boeing to capitalize on economies of scale and reduce production costs.

Beyond the 737 MAX, Boeing faces additional challenges, including managing loss-inducing fixed-price programs in its defense sector, staying on track with the 777X project, and ensuring timely deliveries of the 787. With ongoing supply chain issues impacting the aviation industry, navigating these obstacles won’t be easy. However, the good news from December appears to have had a positive effect on Boeing’s stock performance.

Seize Your Next Investment Opportunity

Have you ever felt you missed out on investing in successful stocks? This might be your chance to reconsider.

Our expert analysts occasionally issue a “Double Down” stock recommendation, highlighting companies they believe are poised for significant gains. If you fear you’ve missed your opportunity to invest, now may be the ideal time to act before it’s too late. The numbers tell a compelling story:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $348,216!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $47,425!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $480,681!*

Currently, we’re issuing “Double Down” alerts for three exceptional companies, and opportunities like this may not come around often.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 30, 2024

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.