The Hidden Factor Behind The Boeing Company (BA)’s Massive Profits

Right now, the Dreamliner’s main competition is Airbus’ A350. Both planes are next-gen, medium-sized planes, built for long-haul flights, and come with the bonus of improved fuel savings. Also, the A350 took its maiden voyage at this year’s Paris Air Show — and now that it’s flying and not just a concept, Airbus’ A350 will become more of a threat to Boeing’s Dreamliner sales. Still, Boeing maintains that the Dreamliner gets better gas mileage, but Airbus counters the claim by saying the A350 is quieter and has lower operating costs.

What will happen with Dreamliner sales vs. A350 sales is anyone’s guess. But considering how the Dreamliner affected Boeing’s stock when it was grounded, and again when it was released from that grounding, investors should keep a close eye on the growing competition between the A350 and Dreamliner.

The article The Hidden Factor Behind Boeing’s Massive Profits originally appeared on Fool.com is written by Katie Spence.

Fool contributor Katie Spence has no position in any stocks mentioned. Follow her on Twitter: @TMFKSpence. The Motley Fool owns shares of Lockheed Martin.

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