More than Wall Street anticipated, Boeing lost $425 million in the first quarter due to production issues with its passenger aircraft and a write-down for a military tanker.
However, revenue increased 28% year over year as airlines purchased new aircraft to fulfill the growing demand for travel.
According to CEO David Calhoun, it was “a solid first quarter.”
“Despite recent supply chain delays, we are still making progress toward the long-term and this year’s goals that we have established. In all of our major markets, demand is strong, he said in a statement.
Wednesday’s opening bell saw a more than 4% increase in Boeing stock.
Last week, Calhoun announced that Boeing will put off the delivery of a few aircraft that airlines were counting on for the busy summer travel season. On the majority of 737 Max aircraft manufactured after 2019, a contractor inserted prohibited connectors between sections of the fuselage, causing delays.
Calhoun could not specify how many deliveries would be postponed as a result of Spirit AeroSystems’ activities, but he did state that 9,000 seats, or around 50 Max planes, would be absent from airline schedules this summer.
Boeing still aspires to produce 400 to 450 Max jets this year, despite the setback. It produced 111 in the first three months.
Boeing stated that it continues to anticipate raising Max output. Beginning this year, the company built 31 homes every month. By the end of the year, it hopes to build 38 homes per month and 50 homes per month by 2025 or 2026.
Boeing reiterated earlier assurances that the Max’s fuselage issue has no impact on safety and that airlines can continue to operate the aircraft that are currently transporting people.
Boeing incurred a $245 million penalty for the defense sector of its business to address issues with its KC-46A refueling tanker.
The Arlington, Virginia-based business estimated that its core businesses suffered a loss of $1.27 per share. A FactSet survey of analysts showed that they anticipated the company would lose $1.07 per share.
Analysts had predicted $17.52 billion in revenue, but actual revenue increased to $19.92 billion.
Additionally, the business maintained its expectation that it will generate $3 billion to $5 billion in cash flow this year.