Boeing Struggles Amid Financial Losses and Leadership Change

Boeing has reported a $1.4 billion loss in the second quarter and plans to appoint Robert 'Kelly' Ortberg as the new CEO. The aircraft manufacturer is facing numerous challenges including financial losses, supply-chain issues, regulatory scrutiny, and the fallout from previous aircraft crashes.

Boeing has reported a loss exceeding USD 1.4 billion in the second quarter, with a longtime industry executive set to take over as CEO of the embattled aircraft manufacturer next week.

Robert 'Kelly' Ortberg, 64, a former CEO at Rockwell Collins, will succeed as CEO, the company announced.

Boeing's financial performance has fallen short compared to Wall Street expectations, with a 15% revenue decline year-over-year and losses in both its commercial-airplanes and defense units.

The dismal results emerge as Boeing navigates a period of significant turmoil. The company has agreed to plead guilty to fraud related to the Max aircraft, which was involved in two fatal crashes. Heightened oversight from the Federal Aviation Administration follows various mishaps, including a blown panel on an Alaska Airlines jet, alongside whistleblower allegations of compromised manufacturing practices.

Supply-chain complications are further hampering production, which Boeing aims to rectify partially by re-acquiring Spirit AeroSystems, a crucial contractor. The firm is also striving to secure regulatory approval for two new Max models and a larger 777 jetliner. Concurrently, Boeing must decide the timing for designing a new single-aisle aircraft to replace the Max.

(With inputs from agencies.)