Boeing posts smaller loss, expects more stability in operations

Boeing’s Q2 Performance Signals a Turning Point

Key Financial Highlights

• Net Loss: $697 million, a sharp drop from last year’s $1.4 billion loss.
• Revenue Growth: 34.9 % rise to $22.7 billion, surpassing analyst expectations.

Delivery Momentum Reaches a 2018 High

In the second quarter – or the first half of the year – Boeing delivered the highest number of aircraft since 2018.

This rebound reflects renewed focus on quality‑control upgrades after a series of safety‑related incidents.

Strategic Production Push for 737 MAX

Boeing reaffirmed its plan to seek increased 737 MAX production availability from the Federal Aviation Administration in 2025.

Conclusion: The 2025 FAA Approval Is a Critical Milestone

Securing that approval stands as a pivotal goalpost in Boeing’s turnaround strategy, especially in light of a January 2024 Alaska Airlines flight that experienced a mid‑flight window panel blow‑out.

Boeing Eyes 737 MAX Output Upswing

Boeing chief Kelly Ortberg pledged plans to hike 737 MAX production after boosting output to 38 units a month in Q2. The new CEO, who assumed the role last August, expressed optimism about progress yet warned that work remains.

Culture Shift Earns Praise

“We’re turning the corner,” Ortberg told CNBC. “We’ve done a lot of work on the culture and teams are rallying around that.” He cautioned, however, that significant efforts still lie ahead.

Cashflow Outlook

• Ortberg said Boeing will likely be cash‑flow positive in Q4, but Q3 may suffer a “big payment” linked to a DOJ criminal case settlement over two 737 MAX fatal crashes in 2018 and 2019.
• Earlier guidance projected cash‑flow positivity for the second half of 2025.

Production Milestones

• 737 MAX production topped 38 units a month during Q2. Ortberg declined to specify when the FAA would authorize a jump to 42 units a month, indicating the company will tackle the issue in Q3.
• The 787 Dreamliner now delivers seven units a month, up from five earlier in the year.

Market Resurgence

Boeing has resumed deliveries to Chinese carriers after a hiatus at the peak of the Washington–Beijing trade standoff earlier this year. Both nations have suspended the most onerous tariffs and are moving toward a deal, with talks ongoing in Stockholm on Tuesday.

Certification Challenges

Ortberg’s letter to employees highlighted delays in certifying the 737‑7 and 737‑10 models due to anti‑ice mechanism complications. “Progress has taken longer than we expected, and we now anticipate certification next year,” the CEO noted.

Share Price Activity

Boeing shares dipped 2.4 percent in morning trading following the announcement.