Boeing Appoints Kelly Ortberg as New CEO Amid Crisis

Boeing has appointed aerospace industry veteran Kelly Ortberg as its new President and CEO. Ortberg faces the daunting task of addressing Boeing's financial woes, reviving jet production, and restoring public and regulatory trust after numerous safety incidents and financial losses. The planemaker expects continued financial strain through 2024.

Boeing on Wednesday appointed aerospace veteran Kelly Ortberg as its new President and CEO after an exhaustive search. Ortberg, previously with Rockwell Collins, takes the helm on Aug. 8, tasked with reviving the struggling planemaker's jet production and mending relationships with regulators and the public.

This leadership change follows a tumultuous period for Boeing, including a January 5 incident where a panel on a MAX 9 jet blew out mid-air, resulting in the resignation of CEO Dave Calhoun. Boeing reported a $1.4 billion loss for the quarter, continuing a trend of financial instability.

Following the January incident, the U.S. Federal Aviation Administration (FAA) restricted Boeing's 737 MAX production. The regulator demanded a comprehensive quality-control plan, which Boeing submitted in May, but production increases have been stalled, leading to decreased aircraft deliveries and revenue.

The company's struggles extend beyond commercial aviation, with the Defense, Space, and Security unit also experiencing significant losses due to inflated costs and fixed-price contracts. Boeing plans to shift away from such contracts to mitigate further financial losses.

Despite anticipation for the Farnborough Air Show, Boeing’s financial outlook remains grim, with CFO Brian West predicting the planemaker will burn cash through 2024 due to lower jet deliveries.