Business

Boeing in $11bn Aeromexico deal as profits rise 3%

Dreamliner aircraft
Image caption Boeing's 787 Dreamliner has helped boost profits

Planemaker Boeing is to sell up to 100 planes to Mexican airline Aeromexico in a deal worth $11bn (£7bn).

The news came on the same day Boeing announced a 3% increase in second quarter net income to $967m (£625m) on revenues of $20bn (£13bn).

Its results were boosted by sales of commercial aircraft, the company said .

Boeing strengthened its outlook for 2012, increasing earnings per share guidance to between $4.40 and $4.60, up from between $4.15 and $4.35.

The results brought half-year net income up to $1.89bn, a 24% rise over the same period last year.

Chief executive Jim McNerney said: "Increased revenues and strong operating performance across both our major businesses drove significantly improved first-half 2012 results for Boeing."

Commercial aeroplane deliveries rose 27%, he said, while "our defence, space and security business also produced higher revenues and strong margins in a difficult market environment".

Aeromexico said it had signed an agreement with Boeing to buy 90 Boeing 737-8 MAX and eight 787-9 Dreamliner aeroplanes.

The only blot on Boeing's landscape was its Network and Space Systems division, which saw second quarter revenues fall 9% to $1.89bn.

Boeing's shares were up nearly 2% to $72.43 in mid-morning trade.

In April, Boeing's 787 Dreamliner, which uses 20% less fuel thanks to its lighter, composite materials, made its first UK test flights.

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