Boeing reported lower profits and lower profits than analysts expected in the second quarter, but on Wednesday it was on the verge of resuming delivery of the 787 Dreamliner aircraft towards the end of the year. , Said that more cash will be put into the business. after that.
According to the company, revenue for the quarter fell from $ 567 million in the year-ago quarter to $ 160 million, with revenue close to $ 16.7 billion, down 2% from last year. The company’s free cash flow, closely followed as an indicator of its financial position, was minus $ 182 million in the second quarter, but Boeing is ready to report positive cash flow for the full year. Said.
The announcement came after Boeing’s Banner Week, which announced the sale of about 200 commercial aircraft at the International Air Show.
Boeing CEO Dave Calhoun said in a statement that the company “is gaining momentum.”
In the second quarter of this year, Boeing achieved its goal of increasing production of its flagship commercial aircraft, the 737 Max, to 31 aircraft per month. Boeing produced as many as 52 of its largest models a month until the jet was involved in two fatal crashes in late 2018 and early 2019. These crashes, which killed 346 people, ranged from March 2019 to almost all of 2020. Max was then allowed to fly again, provided that Boeing made certain modifications to the plane.
Since then, the backlog of Boeing’s plane orders has recovered significantly, and Max has made tens of thousands of flights and spent more than 1.5 million hours in the air, the company said. Boeing announced last week that it sold more than 185 jets to a small number of customers. Delta has ordered 100 Max 10 aircraft, the largest variation of the plane. It is based on a Max order of 233 aircraft. Boeing recorded until June of this year.
However, while Max, a single-aisle plane, has enjoyed a solid recovery over the past year, another Boeing commercial plane has been shelved. Delivery of the Twin Isle 787 Dreamliner has been suspended for over a year due to quality concerns, but the company said it is approaching an agreement with the Federal Aviation Administration to begin reshipping the plane.
“Our 787 team is in the final stages of preparing to resume delivery,” Calhoun said in a note to employees.
In May, Lufthansa announced that it would purchase seven Dreamliners. Last week, Boeing announced an additional order for five Dreamliners from airline leasing company Bubble Wrap and four from Azerbaijan Airlines.
The freeze on delivery has hit Boeing’s customers. For example, earlier this year, American Airlines said it needed to cut some international routes from its summer schedule. This is because I was planning to run them using that plane. American Airlines executives said last week that the airline will receive two Dreamliners next month.
Prior to the pandemic, Boeing produced 14 planes a month, but production has declined due to a recent suspension. The company said on Wednesday that it expects to eventually return to production of five Dreamliners a month and eventually absorb $ 2 billion in the “abnormal cost” of the program. This includes $ 283 million in the second quarter.
