American Airlines Boeing 777 aircraft – illustrative photo.
Chicago/Prague – American aircraft manufacturer Boeing reduced its loss in the first quarter to $425 million (over nine billion CZK) from a loss of $1.24 billion a year ago. The company announced this in its financial results today. At the same time, it announced that it wants to increase the production of 737 MAX aircraft to 38 units per month by the end of the year, which will be seven more than before. Revenue increased more than 28 percent to $17.9 billion.
Boeing is recovering from a crisis since two fatal crashes of 737 MAX planes in 2018 and 2019. The company continues to struggle with supply chain problems and a technical problem with the production of a part from one of its suppliers.
Overall, Boeing confirmed it plans to generate between $3 billion and $5 billion in free cash flow this year and deliver 400 to 450 737 MAX planes and 70 to 80 787 Dreamliners. He wants to increase the monthly production of the latter machine to five from the current three aircraft by the end of the year.
In April, supplier Spirit AeroSystems reported that the installation of fittings on the rear of the 737 MAX was not up to standard. Faulty assembly may affect deliveries as early as 2019. Non-standard assembly does not threaten flight safety and does not affect machines that are already in operation. remain confident in the operational and financial goals we have set for this year,” Boeing CEO Dave Calhoun wrote in a letter to employees.
Boeing's cash draw down slowed to $786 million in the first quarter from $3.57 billion a year earlier. The company delivered 27 percent more aircraft year-on-year in the quarter. Aircraft manufacturers usually receive the main part of the cash when they hand over the aircraft.
“The path of the aircraft manufacturer Boeing from the problems and crises in which it has found itself in recent years does not seem to be so simple,” XTB analyst Štěpán told ČTK The grove. “At the beginning of April, Boeing began to face problems in the production of the 737 models, which are the company's main source of revenue. The management did not offer a satisfactory solution, although it had previously warned investors that it planned to increase production to improve the cash position. The risk is a loss of credibility and confidence in the quality of production ,” he added.
“In the case of Boeing, everything is now about the cash it needs to generate. For now, the management is taking all steps to deliver its solid growth, which must also please investors,” Hájek said. According to him, the company did not estimate a loss in the results. “The biggest surprise was free cash flow, which ended at minus $800 million, but the consensus was for minus $1.91 billion,” he added.
Boeing shares added about three percent to nearly $207 after the results were released.