Boeing's quarterly loss shrinks as jet deliveries rebound, but shares drop
Boeing still reported a second-quarter loss of US$612 million, but that was a big improvement over the US$1.4 billion loss a year ago.
SEATTLE - Boeing's quarterly loss more than halved and was much smaller than analysts expected as the US planemaker ramped up jet deliveries, recovering from a regulatory crisis and a major strike that halted most production in 2024.
The results highlighted Boeing's efforts to cautiously increase monthly output in 2025, following years of quality issues and production delays on its flagship 737 MAX.
However, Boeing shares closed down 4.4 per cent on July 29, after its results announcement.
The drop was 'surprising' and unwarranted based on the quarterly results, Barclays Capital aerospace analyst David Strauss said in a note to investors.
The company's financial improvements were tempered by its announcement that certification of the 737 MAX 7 and 10 models will not happen until 2026, another setback for those programmes. The company previously said it expected to finish certification by the end of this year.
The company is still developing solutions to address problems with the 737 MAX models' engine de-icing systems that are stalling certification, which is proving a 'little more tricky' than anticipated, Boeing chief executive officer Kelly Ortberg told CNBC.
During the interview, he praised US President Donald Trump's aggressive use of tariffs to hammer out trade deals.
'I like the way this tariff situation is playing out,' Mr Ortberg told CNBC. 'It's good for our business, is good for aerospace,' and will create jobs in the United States.
The United States and European Union agreed to exempt aircraft and aviation parts from tariffs. However, raw materials such as steel and aluminum remain subject to steep duties.
Boeing still reported a loss of US$612 million (S$788 million) in the quarter, but that was a substantial improvement over the US$1.4 billion loss during the same period a year ago.
Mr Ortberg joined the company in August 2024 as it sought to recover from its latest crisis, caused by a poorly installed panel that blew off a Boeing 737 Max jet during a flight early last year. No one was killed, but the episode resurfaced widespread concerns about Boeing's planes five years after two fatal crashes involving the Max.
The new CEO ordered changes aimed at improving quality and safety. And the company has steadily increased production and deliveries of its passenger planes since. Boeing delivered 280 commercial jets in the first half of this year, the most in the first six months of any year since 2018, before the fatal Max crashes.
Boeing has also increased production of the Max to 38 planes per month, a ceiling the Federal Aviation Administration imposed after the panel blowout. Mr Ortberg said the company was planning to ask the FAA for permission to increase production to 42 Max jets a month when internal quality metrics indicated that it was safe to do so. The company has also increased production of the 787 Dreamliner, a larger, twin-aisle plane, to seven jets per month.
New orders for the company's planes have improved, too, with more than 420 commercial jets ordered in the second quarter. That was its best quarterly sales since late 2023. Those orders may have been boosted by trade deals struck by Mr Trump, several of which included commitments from other countries to buy Boeing planes, though experts said that many such orders might have been placed anyway. REUTERS, NYTIMES
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