Boeing posts loss as it grapples with delays on commercial and defense programs

[mahatmakanejeeves]

Source: CNBC

AEROSPACE & DEFENSE

Boeing posts loss as it grapples with delays on commercial and defense programs

PUBLISHED WED, APR 27 2022 7:31 AM EDT UPDATED 30 MIN AGO

Leslie Josephs
@LESLIEJOSEPHS
https://twitter.com/lesliejosephs

KEY POINTS
-- Boeing’s first-quarter sales and revenue missed analysts’ estimates.
-- The manufacturer says it is pausing 777X production and that it doesn’t expect deliveries to start until 2025.
-- The company said it’s ramping up 737 Max output to 31 a month in the second quarter.

Boeing reported a wider adjusted quarterly loss and lower revenue than analysts expected as the company faced higher costs on both commercial and defense aircraft and charges tied to the war in Ukraine. ... The manufacturer said it will pause production of its 777X plane, which has not yet been certified by U.S. regulators, through 2023, a plan the company says will create $1.5 billion in abnormal costs starting in the second quarter.

Boeing also doesn’t expect deliveries of the plane to start until 2025, more than a year later than it previously forecast. Its shares were down more than 7% in morning trading Wednesday after it reported results. ... Boeing has enjoyed a resurgence in demand for its 737 Max plane, which returned to service in late 2020 after two fatal crashes. But production problems and certification delays have hampered other aircraft programs.

{snip}

Boeing said it submitted its Dreamliner certification plan to the Federal Aviation Administration, a step toward getting regulators to sign off on resuming deliveries of the wide-body jets. Those handovers to customers have been suspended for most of the last 18 months, and buyers like American Airlines said they scaled back some international flying in response.

The company posted a net loss of $1.2 billion in the first quarter, wider than the $561 million loss it posted a year earlier. Revenue of $13.99 billion fell 8% from the first quarter of 2021 and short of analysts’ estimates.

{snip}

Read more: https://www.cnbc.com/2022/04/27/boeing-ba-1q2022-earnings.html

[IronLionZion]

1. Travel is recovering in the US and some other regions

so airlines will probably start buying more jets soon to keep up with increasing demand for flights