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Boeing ( BA ) ramps up 737 MAX production, stabilizing operations

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Boeing ( BA ) says FAA will not certify 777-9 and 737 MAX 7 and

10

models until 2026

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Boeing ( BA ) faces supply chain disruptions, tariff pressures

By Dan Catchpole and Shivansh Tiwary

July 29 (Reuters) - Boeing's ( BA ) quarterly loss more

than halved and was much smaller than analysts expected as the

U.S. planemaker ramped up jet deliveries, recovering from a

regulatory crisis and a major strike that halted most production

last year.

Boeing ( BA ) shares dropped 2% in early trading.

The results highlighted Boeing's ( BA ) efforts to cautiously

increase monthly output this year, following years of quality

issues and production delays on its flagship 737 MAX. Increased

deliveries mark a pivotal step in Boeing's ( BA ) effort to rebound

from years of production disruptions and crises that piled on

debt, increasing the urgency of accelerating output to restore

financial stability.

Boeing's ( BA ) financial improvements were tempered by its

announcement that certification of the new 777-9 and 737 MAX 7

and 10 models will not happen until 2026, another setback for

those programs. The company previously said it expected to

finish certification by the end of this year.

The company is still developing solutions to address several

lingering issues stalling certification, Boeing ( BA ) CEO Kelly

Ortberg told CNBC.

During the interview, he praised President Donald Trump's

aggressive use of tariffs to hammer out trade deals.

"I like the way this tariff situation is playing out,"

Ortberg told CNBC. "It's good for our business, is good for

aerospace, and will create jobs in the United States."

The planemaker posted an adjusted core loss per share of

$1.24 for the quarter through June, compared with a $2.90 loss a

year ago. Analysts had expected a loss of $1.48 per share.

The planemaker's free cash flow usage, a key metric for Wall

Street, was better than expected, signaling an improving cash

position.

"As we continue to execute our Safety & Quality Plan,

there's more stability in our operations," Ortberg said in a

letter to Boeing ( BA ) employees.

In May, the company produced 38 737s and production has been

stable since then, according to the company.

CAPPED PRODUCTION

The U.S. Federal Aviation Administration capped the production

of Boeing's ( BA ) best-selling 737 MAX jets following a mid-air panel

blowout in a nearly new jet in January 2024.

"We plan to seek FAA approval to increase to rate 42 when

our key performance indicators (KPIs) show that we're ready,"

Ortberg added.

Boeing ( BA ) delivered 206 737 MAX jets through the first half of the

year, compared to 135 a year earlier. Across all commercial jet

programs, it delivered 285 airliners through June, compared to

175 during the same period in 2024. Wall Street closely tracks

aircraft deliveries because planemakers collect much of their

payment when they hand over jets to customers.

Boeing ( BA ) also increased 787 production at its plant in

Charleston, South Carolina, from five aircraft a month to seven.

Through the first half of the year, the planemaker booked

668 orders, or 625 net orders after cancellations and

conversions.

It reported free cash flow usage of $200 million for the

second quarter, compared with analysts' expectations of $1.72

billion, according to data compiled by LSEG. Boeing ( BA ) burned $2.3

billion in free cash during the previous quarter and $4.33

billion during the second quarter of 2024.

Its defense, space, and security business earned an

operating profit of $110 million, compared with a loss of $913

million a year ago.

Revenue for the quarter rose 35% to $22.75 billion, beating

analysts' estimates of $21.84 billion.