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Boeing reports losses as Air Force One’s work is dragged

Boeing Co., Ltd.

BA -2.70%

He reported losses for the sixth straight quarter, but said production and delivery of new jet airliners was at an inflection point because it depended on vaccination rates and trade relations between the United States and China.

The aerospace giant resumed delivery of the 737 MAX and 787 Dreamliner during the quarter, but continues to suffer from quality issues. The company has booked a replacement fee for Air Force One’s presidential jet due to problems with its suppliers.

The spotted recovery of global air travel remains the biggest problem for Boeing and its huge supply chain, with some domestic markets in the United States and Asia recovering to pre-pandemic levels and long distances to Europe. Travel is struggling.

Boeing stocks fell early in the deal, most recently by more than 3%.

Aircraft deliveries are starting to increase and Boeing has not changed its jet production plans. CEO David Calhoun said Wednesday that the short-term increase depends on relations with China’s biggest customer, China. China has not yet followed the United States and other regulators in recertifying MAX.

Mr. Calhorn predicted a “stable and stable” production rate because there were no significant orders from Chinese customers. “Let them down-I don’t think so,” Calhorn said in an interview with CNBC. “Take them up and at what rate this is important.”

Limited resumption of 737MAX and 787 Dreamliner jets Against the background of quality issues First-quarter sales contributed $ 15.2 billion, down 10% year-over-year. Boeing reported a loss of $ 651 million, compared to a deficit of $ 611 million in the previous year.

Boeing has spent $ 318 million on work to make two 747-8 jets function as future Air Force Ones due to pandemic-related delays and dispute with suppliers. The company has a contract to deliver two modified 747-8 jumbo jets by the end of 2024, but has been forced to switch suppliers for some of the interior work on the plane.

American Airlines returned the Boeing 737 MAX to the air with passengers in late December on a flight from Miami to New York. It was the first time in almost two years that MAX had passengers in the United States. Photo: Marco Bello / Reuters (Video 12/29/20)

The two planes, once destined for the obsolete Russian airline, have been converted by Boeing into new interiors, communications systems and defense systems. $ 3.9 billion contract awarded After a long price conflict with the former president

Donald Trump..

Boeing was in charge of the program last year and has since been involved in a dispute with GDC Technics LLC, which was working on some upholstery repairs.The office Last week, Chapter 11 filed for bankruptcy protection Court records show that after Boeing canceled the contract due to performance issues and then argued against the plane maker.

This is the latest drug from a defense unit that Boeing relies on to bring it to the recovery of commercial airline traffic.

Boeing has been working on commercial airline production issues in recent months. To resolve manufacturing issues, we have suspended delivery of the 787 for five months.Earlier this month, I instructed the airline to ground 106 MAX jets. Solving electrical problems Outcomes from Changes in the assembly process.

According to the company, the recovery in air travel demand is gaining momentum, but remains uneven. The company said the US trade deal with China would increase orders for new aircraft as sales of new aircraft recovered due to the increase in the Covid-19 vaccine.

In a message to staff on Wednesday, CEO David Calhoun said:

The loss of 92 cents per share for the quarter ending March 31 was slightly above the 98 cents consensus among analysts polled by FactSet. The company ran out of $ 3.4 billion in cash this quarter.

Write to Doug Cameron doug.cameron@wsj.com And Andrew Tanger Andrew.Tangel@wsj.com

Correction and amplification
Boeing reported a quarterly loss on Wednesday for the sixth consecutive year. Earlier versions of this article mistakenly stated that it was the company’s seventh consecutive loss. (Corrected on April 28, 2021)

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Boeing reports losses as Air Force One’s work is dragged

Source link Boeing reports losses as Air Force One’s work is dragged

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