The Boeing Company has reported first-quarter revenue of US$15.2 billion, primarily driven by lower 787 deliveries and commercial services volume, partially offset by higher 737 deliveries and higher KC-46A Tanker revenue. GAAP loss per share of (US$0.92) and core loss per share (non-GAAP) of (US$1.53) reflect year-over-year KC-46A Tanker improvement, higher 737 deliveries, and lower commercial airplanes period costs, partially offset by lower tax benefits and higher interest expense. Boeing recorded operating cash flow of (US$3.4) billion.
Commercial Airplanes first-quarter revenue decreased to US$4.3 billion, driven by lower 787 deliveries, partially offset by higher 737 deliveries. First-quarter operating margin improved to (20.1)%, primarily due to higher 737 deliveries and lower period costs.
Boeing is continuing to make progress on the safe return to service of the 737 MAX worldwide. In addition, it is working closely with the FAA and its customers to address electrical issues identified in certain locations in the flight deck of select 737 MAX airplanes. Since the FAA’s approval to return the 737 MAX to operations in November 2020, Boeing has delivered more than 85 737 MAX aircraft and 21 airlines have returned their fleets to service, safely flying more than 26,000 revenue flights totaling over 58,500 flight hours (as of April 26, 2021). The 737 program is currently producing at a low rate and continues to expect to gradually increase production to 31 per month in early 2022 with further gradual increases to correspond with market demand. The company will continue to assess the production rate plan as it monitors the market environment and engages in customer discussions.
The company also resumed 787 deliveries in late March, following comprehensive reviews to ensure each airplane meets the company’s highest standards. During the quarter, the 787 program consolidated final assembly to Boeing South Carolina and transitioned to the previously announced production rate of 5 aircraft per month.
Commercial Airplanes continues to work closely with global regulators on all aspects of 777X development, including its rigorous test program, and the company still expects to deliver the first 777X in late 2023. As previously announced, the combined 777/777X production rate is transitioning to two aircraft per month.
Commercial Airplanes secured orders for 100 737 aircraft from Southwest Airlines, 25 737 aircraft from United Airlines, 23 737 aircraft from Alaska Airlines, and four 747 freighter aircraft from Atlas Air. Commercial Airplanes delivered 77 airplanes during the quarter and backlog included over 4,000 airplanes valued at US$283 billion.
