Philippine Airlines, a Southeast Asian carrier, plans to purchase as many as 20 Boeing NYSE:BA 787-10 Dreamliners, marking its first direct aircraft order from the U.S. plane manufacturer in almost two decades. The airline announced the agreement at the UK Farnborough International Airshow, with deliveries expected to begin in 2031. The memorandum of understanding covers 15 firm orders and options for five additional aircraft, potentially giving Boeing another commercial boost as it builds on recent orders from aircraft lessor SMBC and Riyadh Air.
The planned purchase may help Boeing maintain a presence in the Philippine aviation market, where Airbus (EADSY) aircraft currently dominate. Philippine Airlines operated 82 aircraft at the end of last year, including 10 Boeing 777s and four Airbus A350s for long-haul routes, as well as 11 Airbus A330s serving destinations across the Asia-Pacific region. The Dreamliner commitment could support the airline's future expansion while adding greater visibility to Boeing's long-term delivery pipeline, although the first aircraft are not scheduled to arrive until 2031.
Philippine Airlines' growth plans are also being supported by a $15 billion airport project near Manila, which could create additional capacity for the carrier's future operations. The airline signed an agreement in June to join Oneworld, a global airline alliance whose members include American Airlines Group (AAL), a major U.S. airline operator, and International Consolidated Airlines Group, the parent company of British Airways. Investors may view the aircraft order, airport development and planned alliance membership as signs that Philippine Airlines is preparing for broader growth over the coming years.