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Boeing raises jetliner list prices by 2.9 percent

Published 01/07/2015, 23:51
© Reuters. The Boeing logo is seen at their headquarters in Chicago
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By Alwyn Scott

SEATTLE (Reuters) - Boeing Co (N:BA) raised list prices for its jetliners by 2.9 percent on Wednesday, citing a range of costs that go into making the planes.

The price of the company's forthcoming 777X, due for delivery by 2020, rose to $400 million (256 million pounds) in Boeing's new price list, posted on its website on Wednesday. That compared with $379 million for the larger 747-8, which has struggled to attract orders.

Boeing said the price increases reflect higher wages as well as rising costs for materials, parts and services. The 2.9 percent increase from 2014 prices compares with a 3.1 percent increase last year from 2013 and a 1.6 percent increase in 2013.

By comparison, rival plane maker Airbus (PA:AIR) lifted its list prices by 3.3 percent in January. The cheapest Airbus plane, the single-aisle A318, now lists for $6.3 million less than the least expensive Boeing plane, the 737-700, which lists for $80.6 million. At the top end, the largest Airbus plane, the A380, lists for $428 million.

Airlines typically receive steep discounts from list prices, but the figures are used for valuing orders.

© Reuters. The Boeing logo is seen at their headquarters in Chicago

Price increases are an annual exercise, and Boeing said the timing of the latest increase was not related to Dennis Muilenburg taking on the role of chief executive on Wednesday. Former CEO Jim McNerney last week announced his plan to step down from the top job on July 1.

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