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A Boeing 787-10 is towed in Charleston. (Photo: AirlineGeeks | Chuyi Chuang)

Boeing Forecasts Positive Cash Flow by 2022 End

U.S.-based Boeing released its second-quarter earnings report on Wednesday morning, reporting revenue of $16.7 billion, down 2 percent from its second-quarter earnings one year prior and $0.89 billion lower than analysts’ expectations.

Boeing recorded GAAP earnings per share of $0.32 and a loss per share of $0.37 (non-GAAP), thus exceeding analysts’ prediction of a loss of 14 cents per share. The aircraft manufacturer is on track for a positive cash flow by year’s end, recording a cash-flow surplus of $0.1 billion this quarter. In the second quarter of 2021, Boeing had burned through $483 million in cash flow

“We made important progress across key programs in the second quarter and are building momentum in our turnaround,” stated Boeing President and Chief Executive Officer, Dave Calhoun in a press release.

The second quarter results can largely be contributed to the unfavorable performance and significantly lower volume in its defense sector. However, this was partially offset by its increased performance in its commercial airplane sector. The company’s deliveries of commercial aircraft rose to 121, up 42 from last year’s 79 deliveries in the second quarter. This resulted in a revenue hike of $6.2 billion, three percent greater than 2021.

The recovery of its 737 MAX has had a significant impact on the company’s performance recently. The manufacturer is slowly, but surely reviving the reputation of the aircraft, producing an average of 31 per month. Since late 2020, the aircraft has also racked up a total of 1.5 million flight hours.

“Even with demand high, we won’t chase production rates or push our system too fast,” Calhoun stated in a staff note Wednesday. “With safety and quality at the forefront, we will prioritize stability and predictability.”

The Boeing Company has had a stent of rough goings the few years. As the company seemed to have found its legs following the 737 MAX issues, new complications had arisen with its 787 Dreamliner production.

Following a delivery hiatus of the 787 Dreamliner extending more than a year due to many production flaws, the return of aircraft production and deliveries looks to be on the horizon as it nears the final stages of works with the FAA. The company’s quarterly revenue was most certainly offset by the large decrease in 787 deliveries.

Earlier this year, Boeing had stated that the Dreamliner problems would cost the company $5.5 billion, including $2 billion in irregular manufacturing costs as it slowed production to avoid a large backlog of inventory.

The return of 787 deliveries is vital for the U.S. manufacturer as customers pay the bulk of an aircraft’s price when they take delivery of the planes.

As the company continues to work through its issues, they were still able to secure a large number of Commercial Airplanes orders. The company received 169 737 MAX orders along with 13 freighters, including seven 777-8 Freighters from Lufthansa Group.

Boeing’s backlog includes over 4,200 airplanes valued at $297 billion.

Author

  • Chase Hagl grew up in Twin Falls, Idaho. His love and passion for Aviation landed him in Orem, Utah where he obtained a B.S. in Aviation Management with a minor in Business Management from Utah Valley University. Chase currently works as a flight attendant in Charleston, SC and is also the primary Inflight ASAP ERC representative for startup airline, Breeze Airways. His experience in the aviation industry spans back four years, working in areas including agriculture application, customer service, maintenance, and flight ops. In his free time, Chase enjoys road biking, astronomy, and flying.

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