The logo is seen on the Boeing stand on the opening day of the 2024 Farnborough International Airshow, southwest of London, on July 22, 2024.
Justin Tallis | AFP | Getty Images
Boeing American Airlines reported a wider loss and weaker revenue than analysts expected in the second quarter as its commercial aircraft and defense programs continue to struggle.
Here's Boeing's second-quarter performance compared to estimates compiled by the London Stock Exchange Group:
Loss per share: $2.90 per share adjusted vs. $1.97 per share adjusted Revenue: $16.87 billion vs. $17.23 billion
“Despite a difficult quarter, we are making significant progress in strengthening our quality management system and positioning our company well for the future,” Chief Executive Dave Calhoun said in an earnings release Wednesday.
The airline giant separately announced Wednesday that it had selected industry veteran Kelly Ortberg to replace Calhoun next month.
Boeing reported a second-quarter net loss of $1.44 billion, or $2.33 a share, compared with a loss of $149 million, or 25 cents a share, in the year-ago period. On an adjusted basis, the company reported a loss of $2.90 a share, about $1 a share below analysts’ expectations, according to LSEG.
Revenue for the three months ended June 30 fell 15% to $16.87 billion.
Boeing is trying to regain its footing after a door seal on its new 737 Max nearly blew out early this year, drawing increased scrutiny from regulators and slowing deliveries of the new, more fuel-efficient jet to airlines.
The company's most important commercial aircraft unit reported a 32% year-on-year decline in revenue to $6 billion.
Lower deliveries and production have delayed some of Boeing's financial targets.
The company's chief financial officer, Brian West, warned in May that the company would continue to burn cash in the second quarter, similar to the first, largely due to lower-than-expected production and delivery rates.
The manufacturer on Wednesday reported negative free cash flow of $4.3 billion in the second quarter.
Boeing has been producing its best-selling Max jets at a rate of mid-20s per month over the past few months, far short of its target of 38 per month.
Other Boeing business units have also faced cost overruns and delays, such as the defense unit that builds the two Boeing 747s that will be used as Air Force One, which has fallen behind schedule.
The company’s defense unit reported a 2% decline in revenue in the second quarter to $6.02 billion. The segment lost $913 million during the period, nearly double its loss of $527 million during the same quarter in 2023.
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