LONDON – Boeing has used its first-quarter earnings to give some updates about its aircraft programs and where the company is headed.
The manufacturer recorded revenues of $14bn in Q122, with the GAAP loss per share at $2.06.
Backlog still remains healthy at 4,200 commercial aircraft valued at $291 billion.
Dave Calhoun, Boeing’s President & CEO commented on the financial results of the company:
“While the first quarter of 2022 brought new challenges for our world, industry, and business, I am proud of our team and the steady progress we’re making toward our key commitments”.
“We increased 737 MAX production and deliveries and made important progress on the 787 by submitting our certification plan to the FAA.”
“Despite the pressures on our defense and commercial development programs, we remain on track to generate positive cash flow for 2022, and we’re focused on our performance as we work through certification requirements and mature several key programs to production.”
“Leading with safety and quality, we’re taking the right actions to drive stability throughout our operations, deliver on our commitments to customers, and position Boeing for a sustainable future.”
777X Delays Now Confirmed…
Amid the news this week about delays to the 777X, Boeing has now confirmed this will be happening.
Certification will not take place until late-2024, with deliveries of the aircraft now commencing in 2025, offering another delay to the program.
It is understood the delays to the program will cost Boeing around $1.5 billion in the second quarter of the year and will continue until production of the 777-9X resumes.
With this in mind, Boeing will be ramping up production of the standard 777 Freighter instead starting late next year.
737 MAX Production Increases…
Boeing has also confirmed that now they have nearly completed the global safe return of the type, the production rate is going to increase.
From 2Q22, the production rate will increase to 31 aircraft per month, as the manufacturer aims to continue relieving the backlog of aircraft yet to be delivered.
This is a step in the right direction for Boeing, especially after the last few years of turmoil and chaos it has had with the MAX.
With 99% of the issues ironed out, Boeing can resume some level of normalcy with the MAX.
Plans for 787 Recertification Handed to FAA…
In the 1Q22 reports also, Boeing has announced that the certification plan to the Federal Aviation Administration has been submitted.
Modifications being made to bolster the integrity of the aircraft program have been made in order to get FAA approval as soon as feasibly possible.
Boeing says that they “continue to work closely with the FAA on the timing of resuming deliveries”.
The abnormal costs behind delays of the deliveries of the 787 are expected to reach $2bn, with this mostly being incurred by the end of next year.
Overall…
Boeing has rightly used the first-quarter reports to set out the plans it has made in order to ease stockholder and consumer confidence in the company.
Either way, the delays are not a good thing for Boeing, but it does seem that they are taking things one step at a time.
Now that the MAX issues are sorted out, the focus is now on the 787, and then the 777X will follow thereafter.
For now, Boeing needs to hope that the plans put in place will work, so then efforts towards recovery can be made going forward.
