American, United and Southwest Cut Flights as Q4 Fuel Costs Jump $1B

RTX CEO Chris Calio highlighted the company's record $289 billion backlog, or remaining performance obligations, at the Morgan Stanley 14th Annual Laguna Conference last week, pointing to potential growth toward a Wall Street consensus of $460.5 billion by the end of 2028. Calio said the $289 billion RPO at the end of the second quarter does not include the recently awarded $22.9 billion seven-year Tomahawk cruise missile order or the five framework agreements RTX made with the Department of Defense in February, of which he said volumes will rise anywhere from 2 to 4x. The current RPO is split between $170 billion in commercial aerospace and $119 billion in defense, with only 25% set to be recognized in the next 12 months, and Calio noted that approximately 45% of the RPO relates to long-term commercial aerospace maintenance contracts at Pratt & Whitney expected to be realized over a span of up to 20 years. Calio also cited strength in orders across commercial aerospace original equipment, commercial aerospace aftermarket, and defense, noting that Boeing and Airbus have a 15,000 aircraft backlog to execute on and that demand for integrated air and missile defense is top of mind for every country around the world.

Boeing and Korean Air finalized an order for 103 aircraft worth $36.2 billion at list prices, comprising 20 777-9s, 25 787-10s, 50 737-10s and eight 777-8 freighters. Reuters reported the aircraft will support Korean Air's fleet expansion following its integration of Asiana Airlines, with about 80% expected to replace existing aircraft, while IBA estimates the order's actual value at about $12.6 billion after typical discounts. The deal adds to a Boeing commercial backlog that already exceeded 6,200 aircraft worth $596.7 billion as of June 30, up from $567.3 billion at the end of 2025, and adds another 50 737-10s to a 737 pipeline that already exceeds 4,000 aircraft and extends into the 2030s. Execution remains the bigger risk: Reuters reported Boeing is taking longer than expected to stabilize 737 MAX production at 47 aircraft per month because of wing-supply problems, while 787 production remains at eight per month rather than the targeted 10, and Boeing cut its 2026 free-cash-flow expectation to about $2 billion from $3 billion against roughly $26 billion of net debt. August deliveries also fell to 51 aircraft from 57 a year earlier.

U.S. Trade Representative Greer said on the 21st that China is making progress toward fulfilling the plan it announced in May to purchase 200 Boeing aircraft. Speaking to Fox News, Greer said that of China's Boeing orders, "about 140 are proceeding smoothly. Order procedures are also moving forward for roughly 10 more." He did not say, however, whether China would place additional Boeing orders ahead of the meeting scheduled for the 24th between U.S. President Trump and Chinese President Xi Jinping. China's Commerce Ministry announced in May that it would buy 200 Boeing jets, the first time the Chinese government had officially confirmed a Boeing order. Trump later said the number of Boeing aircraft purchased could reach as many as 750.