New Delhi: Boeing despite higher revenue flipped to a USD 149 million loss in the second quarter. Struggling with higher costs in both its airline and defence business, Boeing said it is beginning to increase production of its two most popular airline planes.
Boeing plans to raise production of the 737 Max from 31 to 38 planes a month to take advantage of demand for newer, more fuel-efficient planes. The company is also boosting output of the larger, two-aisle 787 Dreamliner from four to five per month by year end.
The company has more work ahead but is making progress in our recovery, including improving stability in its factories and among suppliers, said CEO David Calhoun.
For Boeing the supply-chain problems continued during the second quarter, including a temporary delay in 737 deliveries because of fittings on the Max and regulators’ questions about Dreamliner inspections. The company recorded charges of USD 257 million related to a delay in launches of its Starliner reusable space vehicle, USD 189 million for higher than expected production costs for a military training jet, and USD 68 million for delays in a defence refuelling drone.
Boeing’s revenue rose 18 per cent to USD 19.75 billion, more than the USD 18.59 billion that analysts expected. An increase in delivery of commercial planes to airlines and lessors boosted the sales.
