As part of its recovery from supplier error, Boeing has announced its intention to ramp-up production of its 737-family aircraft from a current 31 units per month to 38 per month. The MAX versions make up the majority of planned production. In addition, increased deliveries of the 787 Dreamliner have helped to boost revenue in the planemaker’s commercial aircraft division.
For the second quarter, Boeing reported a free cash flow of US$2.58 billion, compared with a cash burn of US$182 million a year ago. The adjusted loss was 82 cents per share. Analysts polled by Refinitiv were expecting a loss of 88 cents per share. Boeing’s revenue rose 18% to US$19.75 billion, beating expectations of US$18.45 billion.
Margins at its defence business, however, were negative amid cost overruns. Boeing took a total of US$514 million in charges related to the Starliner space capsule after its launch was indefinitely postponed in June, as well as for supply chain costs on the T-7 training jet and a schedule delay for the MQ-25 tanker drone.
Boeing still faces challenges, “whether they be issues to address within our own factories or outside our walls within the supply chain and logistics routes,” CEO Dave Calhoun said, referring to the recent collapse of a railway bridge used to transport 737 fuselages.
Boeing underlined its plan to generate US$3 billion to US$5 billion in free cash flow this year, plus delivering at least 400 single-aisle 737s and 70 787 Dreamliners in 2023. The push to build 38 737s a month comes amid heightened travel demand as airlines look to grow their fleets post pandemic. (£1.00 = US$1.30 at time of publication).
