Boeing Narrows Quarterly Loss as Jet Deliveries Surge, But Certification Delays Persist
Boeing significantly reduced its quarterly loss, surprising analysts as the company accelerated jet deliveries while recovering from last year’s regulatory challenges and a major strike. The US aerospace giant posted an adjusted core loss of $1.24 per share for the quarter ending June—much better than the $2.90 loss a year earlier and ahead of analysts’ expectations of a $1.48 loss.
The result signals progress in Boeing’s efforts to stabilise its operations and improve cash flow, which has become critical following years of disruptions. However, shares fell 3.7% in midday trading, as the company announced further delays in certifying its 737 MAX 7 and MAX 10 models, now expected no earlier than 2026.
Certification Delays Cloud Recovery
Boeing CEO Kelly Ortberg said ongoing issues with the aircraft’s engine de-icing systems were holding up certification. “It’s proving a little more tricky than expected,” he told CNBC. The delays represent a fresh hurdle for the MAX programme, even as deliveries of other models improve.
In a move to reassure stakeholders, Ortberg praised past trade policy under President Donald Trump, noting that tariffs had helped support the aerospace sector. “It’s good for our business and for jobs in the United States,” he added.
Boeing Jet Production and Cash Flow on the Rise
Boeing delivered 206 737 MAX jets in the first half of the year, up from 135 a year earlier. Total aircraft deliveries reached 285, compared to 175 in the same period of 2024. Analysts closely watch these figures, as most revenue is recognised upon delivery.
The planemaker’s free cash flow usage came in at $200 million—far better than expectations of $1.72 billion. The company had burned $2.3 billion last quarter and $4.33 billion during the same period last year.
CFO Brian West said the commercial aircraft division would still lose money in 2025 but expects to end the year with positive free cash flow. Production of the 737 remains stable at 38 units per month, with plans to increase to 42 pending FAA approval.
The agency, however, is cautious. FAA Administrator Bryan Bedford described Boeing’s quality improvements as “real but embryonic.”
787 Output Rises; Defence Division Back on Track
Boeing ramped up production of its 787 Dreamliner in Charleston from five to seven aircraft monthly. It also plans to deliver more than a dozen delayed 787s later this year.
In defence, Boeing resumed deliveries of its KC-46 tanker to the US Air Force and began ground testing of the MQ-25 refuelling drone for the US Navy. The division returned to profit with $110 million in earnings, reversing a $913 million loss a year ago.
However, labour tensions loom. On Sunday, machinists at Boeing’s defence unit rejected a four-year contract proposal. Representing 3,200 employees, mainly in the St. Louis region, the union could vote to strike within days. Ortberg said the company is prepared to manage the situation.
Overall, Boeing booked 668 gross aircraft orders in the first half, with 625 net after cancellations and changes. Quarterly revenue rose 35% to $22.75 billion, topping Wall Street expectations of $21.84 billion.
with inputs from Reuters
