Boeing posts smaller loss as aircraft deliveries improve

The U.S. planemaker reported a core operating loss of $353 million in the first quarter ended March 31, compared with a loss of $1.70 billion a year earlier. Boeing said it recorded a pre-tax charge of $318 million in the quarter related to a new fleet of Air Force One presidential aircraft based on its 747-8 jumbo jet.

Boeing Co reported a smaller quarterly loss on Wednesday as jet deliveries increased due to the rebound in air travel from the coronavirus pandemic, though the U.S. planemaker recorded a charge on its Air Force One presidential aircraft program. Airlines have been ramping up flight capacity as rising vaccination rates make travelers confident about traveling once again.

Boeing has delivered more than 85 737 MAX jetliners after it was cleared by most regulators to re-enter service late last year following two fatal crashes, lifting revenue and cash flow at the planemaker. But the 737 MAX remains grounded in the rebounding China market, where Boeing has been exposed to long-simmering geopolitical tensions that have continued under U.S. President Joe Biden.

A new electric problem found on some models of the jet earlier this month has also cast a shadow on Boeing's freshly re-affirmed plans to increase 737 MAX production to 31 planes per month by early 2022. Airlines have pulled dozens of 737 MAX jets from service, awaiting repairs as Boeing finds a fix. "While the global pandemic continues to challenge the overall market environment, we view 2021 as a key inflection point for our industry," Chief Executive Dave Calhoun said in a statement accompanying Boeing's results.

Boeing also reaffirmed a sharply reduced production rate of five 787 jetliners per month after consolidating production at its South Carolina factory. It is facing reduced demand due to the pandemic's impact on longer-haul travel, and a growing price tag for 787 retrofits due to production defects embedded in dozens of the advanced carbon-composite jetliners.

It, meanwhile, still expects to deliver the first 777X mini-jumbo in late 2023, despite certification and design challenges, with a combined output of the new 777X and its 777 legacy model of two a month. The U.S. planemaker reported a core operating loss of $353 million in the first quarter ended March 31, compared with a loss of $1.70 billion a year earlier.

Boeing said it recorded a pre-tax charge of $318 million in the quarter related to a new fleet of Air Force One presidential aircraft based on its 747-8 jumbo jet. Air Force One subcontractor GDC Technics filed for bankruptcy on Monday after Boeing canceled its contracts.

Boeing sued Texas-based GDC earlier this month for failing to complete interior work on the two heavily modified 747-8 Air Force One planes. GDC countersued the planemaker last week seeking at least $20 million for canceling the contracts. On the plus side, it completed a hot-fire engine test on NASA's forthcoming SLS rocket and started production on the U.S. Air Force's new trainer jet.

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