[ad_1]
Boeing (BA) – Get The Boeing Company Report could be setting itself up from a strong second half of the year as the company attempts to emerge from the 737 MAX issues that have weighed on the company for nearly four years.
The company on July 12 said that it delivered 51 passenger and cargo planes in June, the strongest month of deliveries for the company since March 2019.
Boeing delivered 44 of its 737 MAX airliners and seven larger cargo planes.
It was the also most 737 MAX deliveries Boeing has had since the plane’s grounding ended in November 2020 in what could be a signal that global demand for the aircraft is rising again.
An interesting nugget from the report shows that one of those 737’s was delivered to Ethiopian Airlines. It is the first time Ethiopian took a 737 MAX delivery since the March 2019 crash killed 157 people.
That crash led to a 20-month grounding of the 737 MAX as Boeing worked on software issues that flight authorities said led to the fatal crash.
Since the Ethiopian Airlines crash, Boeing’s stock has dropped nearly 70% as the company was unable to even give away what is still the most popular large passenger aircraft in the world, according to CNN.
Back in November 2021, Boeing admitted full responsibility for the Ethiopia crash. Boeing agreed to a $2.5 billion settlement to the U.S. Department of Justice in January of that year, including a $500 million fund to compensate victims of the Ethiopia crash as well as a 737 MAX crash in Indonesia that occurred just months prior.
Boeing shares were rising 8.4% to $148.45 at last check in afternoon trading.
Shutterstock
Scroll to Continue
Boeing’s Bottom Line Could Use Boost
Boeing’s hiccup was French rival Airbus’ (EADSY) – Get Airbus SE ADR – Level I Report gain as the company overtook Boeing for top global aircraft producer in 2021.
Boeing planes accounted for 8.9 million flights in 2021, compared to 9.4 million flights for Airbus, according to Simple Flying.
In its most recent quarter, Boeing reported a wider-than-expected first-quarter loss thanks in part to around $1.5 billion in ‘abnormal costs’ linked to its 777x twin-engine jet.
The planemaker also said it submitted a certification plan to the U.S. Federal Aviation Administration that could see it resume 787 Dreamliner deliveries later this year, a move that mitigated the surprisingly wide first-quarter loss.
Group revenues, Boeing said, fell 8% from last year to $14 billion, a tally that also missed analysts’ forecasts of a $16.02 billion tally.
Free cash flow was estimated at -$3.6 billion for the quarter, Boeing said, but the group reiterated its forecast to turn the figure positive in 2023.
A net loss of $2.75 per share was much wider than the $1.53 per share the company lost in the year-prior quarter.
Boeing’s Transition
The Wall Street Journal on May 5 broke the news that Boeing may soon be relocating its headquarters from their longtime home in Chicago to Arlington.
The planemaker had called Chicago home since 2001 when it moved its offices over from Seattle amid over $600 million in tax incentives from the city and surrounding counties.
Arlington, the company’s new home is home to numerous military organizations and contractors.
Boeing already has a large office in its Crystal City neighborhood not far from Amazon’s H2Q.
[ad_2]
Source link
