Boeing posts £115m loss but aircraft deliveries pick up speed
Boeing reported a $149m (£115m) net loss in its quarterly results on Wednesday, despite the plane maker seeing a rise in revenues on the back of “strong demand” for commercial aircrafts.
The aerospace giant saw revenues increase to $19.8bn (£16.9bn), up 18 per cent year-on-year, which it said primarily reflected 136 commercial deliveries. It also generated an operating cash flow of $2.9bn (£2.24bn) and free cash flow of $2.6bn (£2.01bn).
However, this was not enough to offset an overall net loss for the group, which has struggled with higher costs in its airline and defence segments.
Boeing CEO Dave Calhoun said it had been a “solid second quarter with improved deliveries and strong cash flow generation,” while shares rose four per cent on the announcement.
Calhoun said that on the back of “strong demand” the company was “steadily increasing our production rates across key programmes”.
The group said on Wednesday that it would be upping production of its iconic 737 Max plane to 38 per month, up from 31 last month.
Calhoun added: “While we have more work ahead, we are making progress in our recovery and driving stability in our factories and the supply chain to meet our customer commitments.”
Boeing and its long-term rival Airbus have been pummelled by supply chain issues stemming from the pandemic, which have constrained their ability to meet growing demand from carriers.
The two manufacturers have struggled to keep up with soaring travel demand this year and as a result, have seen delays hamper deliveries to a slew of airlines.
On Monday, Ryanair blamed Boeing delivery delays for shrinking its annual passenger capacity forecast despite soaring profits and demand.
Last month, boss Calhoun told a conference in Qatar that fixing the supply chain constraints was proving “frustratingly slow,” and that the ability of Boeing and Airbus to meet soaring demand would be limited even “five years from now.”
Airbus posted higher than expected operating profits in a late afternoon announcement, buoyed by higher jet deliveries, but warned of “complex” operational environment for its businesses.