New York (AFP) – Boeing reported a small quarterly loss Wednesday following an uptick in commercial plane deliveries as the aerospace giant pointed to progress on a turnaround after a long period of stumbles. After two fatal 737 MAX crashes in 2018 and 2019 and other safety woes, Boeing replaced leadership in 2024 with Chief Executive Officer Kelly Ortberg, who has sought to restore credibility with regulators and customers through a tighter focus on line operations and safety.
The US aircraft manufacturer reported a loss of $90 million in the first quarter of 2026, compared with a loss of $123 million in the year-ago period. Shares rose following the better-than-expected results, which included a 14 percent jump in revenues to $22.2 billion. Boeing’s first-quarter 2026 results included an uptick in commercial plane deliveries as well as revenue growth in global services and defense, space & security, where Boeing secured new agreements with the US Pentagon.
The latest results, which also noted the company’s “record” backlog of $695 billion in orders, did not contain unexpected cost overruns or other one-time special items that have dented profits in several previous quarters. Executives are working to secure approval from Federal Aviation Administration (FAA) regulators for production increases on the 737 MAX and its other best-selling jet, the 787 Dreamliner. Ortberg said the move to raise 737 MAX production to 42 per month from 38 had gone smoothly.
“All of our key metrics look good,” Ortberg told CNBC. “The production system is very stable, and we’re hearing very good things about the quality of the airplanes from our customers.” Boeing also expects the jump in 737 MAX output from 42 to 47 per month to be fairly straightforward. But Ortberg has previously said going higher than 47 will require improvements in the supply chain and the building of additional manufacturing capacity at its plant in Washington state.
The company, which faces a similar dynamic in ramping up output of the Dreamliner, also said it was on track with efforts to win FAA certification for new 737 MAX models and the 777X, which has been delayed multiple times. Boeing expects certification of the 737 MAX this year, while commercial deliveries on the 777X are expected to commence in 2027. Ortberg confirmed existing timetables, telling CNBC he is “very pleased” with progress on the certifications.
– US defense boost – Ortberg cited NASA’s Artemis II mission as a positive for the company. The US space agency’s expedition set a record for a human crew traveling the furthest away from Earth. President Donald Trump’s administration earlier this week unveiled a $1.5 trillion budget request for the Pentagon, a 42 percent increase as the agency prosecutes the war against Iran.
Boeing has “been investing heavily in our facilities to expand capability” in line with Trump administration priorities, Ortberg said. “We expect that that budget is going to allow us to increase our growth plan.” Ortberg said the war had disrupted operations of major airline clients in the Middle East but that there had been no order cancellations. “This is a long-cycle business; they need the aircraft,” he told CNBC. Shares of Boeing rose 4.1 percent in early trading.
© 2024 AFP
