Boeing Records Best Month of Deliveries in Over Three Years

Boeing (BA) – Get Boeing company report could build from a strong second half as the company tries to emerge from the 737 MAX problems that have plagued the company for nearly four years.

On July 12, the company said it delivered 51 passenger and freighter aircraft in June, the company’s biggest delivery month since March 2019.

Boeing has delivered 44 of its 737 MAX jetliners and seven larger freighters.

It was also the highest number of 737 MAX deliveries Boeing has had since the plane’s grounding ended in November 2020, which could be a signal that global demand for the plane is rising again. .

An interesting nugget from the report shows that one of these 737s was delivered to Ethiopian Airlines. It is the first time Ethiopian has taken a 737 MAX delivery since the March 2019 crash that killed 157 people.

That accident grounded the 737 MAX for 20 months as Boeing worked through software issues that flight authorities say led to the fatal accident.

Since the Ethiopian Airlines crash, Boeing shares have fallen nearly 70% as the company hasn’t even been able to give away what is still the world’s most popular large passenger plane, according to CNN.

In November 2021, Boeing admitted full responsibility for the crash in Ethiopia. Boeing agreed to a $2.5 billion settlement with the US Department of Justice in January of that year, including a $500 million fund to compensate victims of the crash in Ethiopia as well as a accident of the 737 MAX in Indonesia which occurred a few months earlier.

Boeing shares rose 8.4% to $148.45 when last checked in afternoon trading.

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Boeing’s bottom line could use Boost

Boeing hiccup was Airbus’ French rival (EADSY) – Get Airbus SE ADR – Level I Report win as the company overtook Boeing for the world’s top 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 latest quarter, Boeing reported a bigger-than-expected first-quarter loss, thanks in part to about $1.5 billion in “abnormal costs” related to its 777x jet.

The aircraft maker also said it has 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 large first-quarter loss.

The group’s revenue, Boeing said, fell 8% from a year ago to $14 billion, a figure that also missed analysts’ forecast of $16.02 billion.

Free cash flow was estimated at -$3.6 billion for the quarter, Boeing said, but the group reiterated its forecast of turning positive in 2023.

A net loss of $2.75 per share was significantly larger than the $1.53 per share the company lost in the year-ago quarter.

The transition from Boeing

The Wall Street Journal on May 5 announced that Boeing may soon move its headquarters from Chicago to Arlington.

The aircraft manufacturer had called Chicago home since 2001, when it moved its offices from Seattle amid more than $600 million in tax incentives from the city and surrounding counties.

Arlington, the company’s new headquarters, is home to many military organizations and contractors.

Boeing already has a large office in its Crystal City neighborhood, not far from Amazon’s H2Q.

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