Boeing Gains on Optimism Labor Deal Will Avert Strike (1)

Boeing Co. shares rallied on optimism that a labor deal with its largest union will help the troubled US aircraft manufacturer avoid a potentially crippling strike at its Seattle-area factories.

The landmark offer hammered out over the weekend includes a 25% wage increase over four years and a commitment to build Boeing’s next plane in the Seattle area, the two sides said in separate statements.

The accord with union negotiators promises to be a significant victory for new Boeing Chief Executive Officer Kelly Ortberg and his pledge to reset long-contentious labor relations. But it’s too ...