Boeing has struggled to find its footing in the second quarter, with low shipments and “supply chain constraints” causing losses at the top and bottom of the company.
In the three months ended June 30, Boeing’s revenue fell 15 percent to $16.9 billion from $19.8 billion in the same period in 2023.
However, the more troubling figure is the company’s losses.
Boeing’s core operating loss tripled to $1.39 billion from $390 million a year earlier, while its net loss rose nearly tenfold to $1.43 billion from $149 million.
The company said the poor results reflected “lower commercial delivery volumes and losses in fixed-price defense development programs.”
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Deliveries of commercial aircraft fell 32 percent year-on-year to 92 from 136, Boeing said, while deliveries in the six months fell 34 percent to 175.
As revealed in the early July delivery report, Boeing has been struggling to get the 737 into the hands of customers throughout 2024.
Deliveries of Boeing’s best-selling aircraft fell 32 percent to 70 planes in the second quarter from 103 a year earlier, while 787 deliveries more than halved to 9 from 20.
However, Boeing said the 737 program “is in phased production” over three months, and plans to increase monthly production of the 737 and 787 to 38 and five, respectively, by the end of the year.
Jonathan Root, Boeing analyst at Moody’s Ratings, previously said Newsweek that increasing the production rate of both planes is important for Boeing’s continued success beyond 2024.
“After the model’s inventory runs out in March 2025, monthly production rates will determine the number of shipments in 2025 and beyond and light the way to the free cash flow the company is looking for to start the long road to balance sheet recovery,” said Root.
Boeing also said its Defense, Space & Security division struggled to overcome “weakness in commercial production and supply chain constraints,” which led to a loss of $913 million during the quarter, up from $527 million a year earlier.
The company said it suffered a loss of $391 million on the KC-46A program alone, a transport aircraft for the US military built from the Boeing 767 jetliner.
Losses were also noted in the T-7A Red Hawk pilot training system, the 747 militarized VC-25B, and the Commercial Crew space transportation program, which were said to be due to higher engineering and manufacturing costs, along with “technical challenges.”
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“Despite a challenging quarter, we made significant progress in strengthening our quality management system and positioning the company for the future,” said current president and CEO Dave Calhoun. “While we have more work ahead, the steps we are taking will help stabilize our operations and ensure Boeing is the company the world needs.”
The results coincided with the company announcing Kelly Ortberg, the former CEO and president of aerospace supplier Rockwell Collins will be Boeing’s next CEO.
Ortberg’s appointment will take effect on August 8, with Dave Calhoun bowing out before his scheduled departure at the end of the year.
Ortberg said he would put “safety and quality at the forefront” of Boeing’s operations, with Chairman Steve Mollenkopf adding that the nearly four-decade veteran of the aerospace industry has “the right skills and experience to lead Boeing into its next chapter.”
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