Boeing Reports Bigger-Than-Expected Loss Due to Air Force One Program Delays
Boeing reported a larger-than-expected loss for its second quarter, primarily due to costs associated with the delayed production of two new Air Force One aircraft. The company recorded an $828 million net loss compared to last year's $612 million loss and took a $280 million charge on the long-delayed 747 program expected to deliver in 2028. Despite the losses, Boeing saw revenue rise by 8% to $24.56 billion from the previous year due to increased commercial aircraft deliveries and production of its best-selling 737 Max planes now at a rate of 47 per month. Free cash flow was significantly better than expected at $631 million compared to an anticipated cash burn. CEO Kelly Ortberg emphasized ongoing progress on development programs while acknowledging the challenges ahead, including certification for other delayed aircraft models like the 737 Max 10 and 777X.
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Topics: aviation commercial_aircraft defense