- Boeing (BA +0.4%) will not raise airplane prices for the first time in seven years, as plane makers have seen demand cooled by economic uncertainty following the Brexit vote, a commodities market crash in Latin America and moderating oil prices, which have encouraged carriers to hold on to older models they might have otherwise retired.
- Boeing typically adjusts its catalog prices for commercial aircraft once a year to reflect an internal formula that takes into account increases in the costs of goods, services and labor; it hiked prices 2.9% last year and 3.1% in 2014.
- “The industry is a poster child for deflation at this point," says aerospace consultant Richard Aboulafia.