Shares of Boeing Co. /zigman2/quotes/208579720/composite BA +6.45% rose 0.9% in premarket trading Wednesday, after the aerospace and defense giant said Allegiant Travel Co.'s /zigman2/quotes/208507686/composite ALGT +6.28% Allegiant Air has ordered 50 737 MAX jets, with options to buy an additional 50 jets. Allegiant's stock fell 2.1% ahead of the open. The order, Boeing said represents its first deal with an ultra-low cost carrier (ULCC), includes two models, the 737-7 and 737-8-200. The companies didn't disclose a value of the deal. "This deal further validates the economics of the 737 MAX family in the ULCC market and we're excited to stand alongside Allegiant as they integrate these new airplanes into their fleet," said Stan Deal, chief executive of Boeing's commercial airplanes unit. The announcement comes after Reuters reported late Tuesday, citing people familiar with the matter, that Allegiant was poised to order 50 Boeing 737 MAX jets, which would be worth $5 billion at list prices. Boeing's stock has shed 4.8% over the past three months through Tuesday, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.34% has gained 7.2%.
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