Boeing’s first profit in almost 2 years – Aviation

Boeing made its first profit in almost two years in the April-June quarter thanks to a boost in tourism and an increase in deliveries of the B737 MAX. His shares gained 5 percent. despite the US’s very bad relations with China and limited long-range traffic.

In the third quarter of the financial year 2021 (April-June), the concern achieved a net profit of USD 587 million after six consecutive quarters in the negative, after the start of 2.4 billion a year earlier, operating profit of 755 million against a loss of 3.32 billion and increased turnover by 44 percent . to nearly $ 17 billion. Analysts expected an average loss of 454.8 million and turnover of 16.54 billion. The civil aircraft department, however, lost $ 472 million, but the military department earned $ 958 million and the service department $ 531 million.

The improvement is due to the B737 MAX aircraft, with deliveries of more than 130 since the lifting of the grounding in November 2020. Boeing has increased their production to 16 per month, aiming to reach 31 each month by early 2022. With travel booming, the airline began ordering these planes, Southwest bought 100 in March, United in June 200. Ryanair encourages Boeing to launch production of its largest MAX 10, reporting a desire to buy several hundred if the price is right.

The improved results prompted the company to change its employment policy. President David Calhoun informed the staff that the concern will maintain a constant level of employment of approx. 140 thousand. people, previously intended to reduce it to 130 thousand. At the end of 2021, analysts, in turn, announced in a teleconference that the domestic market in the US showed a huge recovery, we assume a few years of improvement, but stipulated that the situation in international travel will require more time. The company is concerned about variants of the virus and the lack of manpower in its extensive supply chain, writes Reuter.

Military equipment and services also performed better, with Boeing expecting continued positive cash flow until 2022. The announced balance sheet triggered an increase in the company’s listing by about 5 percent. up to $ 234.

The MAXs are still grounded in China, and a customs war with the US has hurt aircraft sales. Calhoun hopes that the MAXs will get Beijing approval to resume flights before the end of the year. Boeing sold a quarter of its production to China before grounding them in March 2019. Recently had to cut B787 production to less than five a month after finding another problem in the construction, it has delivered less than half of the 100 pre-made Dreamliners since the beginning of the year. “The good news is that they’ve already been inspected, from nose to tail.” We established the causes and resolved them – said the president. Boeing still has a very meticulous approval procedure for the B777X, for which there is still little demand and troubleshooting for the B787.

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