Boeing shares rose more than 3 per cent in pre-market trading on Wednesday, September 30, after the company secured a contract from the US Navy to develop its next-generation F/A-XX fighter jet. The deal, announced by the US Department of War on Tuesday, is valued at more than $20 billion, or nearly Rs 1.92 lakh crore. Boeing shares were trading 3.18 per cent higher at $193.64 by 2:51 pm IST, after closing 1.78 per cent higher at $187.68 on Tuesday.

The contract covers development of the Sixth-Generation F/A-XX Strike Fighter under the Next Generation Air Dominance (NGAD) initiative. According to the US Department of War, the agreement includes multiple test aircraft for ground, airworthiness, systems and weapons integration testing. The programme is intended to develop an advanced carrier-based fighter capable of operating in increasingly contested airspace and supporting the US Navy's future combat requirements.

Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, described the F/A-XX as an important part of the US military's future air combat capabilities. He said the platform is intended to extend operational reach and provide an advantage to warfighters while being developed alongside Boeing. The programme is also expected to incorporate highly networked systems as the US Navy works to modernise its carrier-based aviation fleet.

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The F/A-XX is designed to operate alongside both manned and unmanned platforms, including Collaborative Combat Aircraft (CCA). The aircraft is expected to extend the Navy's power-projection capabilities while improving the effectiveness of unmanned systems operating with it. The programme is therefore intended to form part of a broader network of aircraft and combat systems rather than operate as an independent platform.

Under the contract, Boeing will eventually deliver the aircraft as a replacement for the Navy's legacy F/A-18E/F Super Hornets and EA-18G Growlers. The transition is expected to begin in the 2030s, with the new fighter operating alongside the F-35C. The programme represents a significant long-term development effort for Boeing and the US Navy as the service plans for its future carrier-based air operations.

Acting Secretary of the Navy Hung Cao said the programme represented a new phase for the US Navy's fighter capabilities and described the Sixth-Generation aircraft as a major advancement in air superiority. The contract announcement also provided a fresh catalyst for Boeing shares, which had already gained during Tuesday's trading session. The market reaction came as investors assessed the potential impact of the multibillion-dollar defence programme on Boeing's business.

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