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By Hugh Cameron
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Boeing has struggled to find its footing in the second quarter, with low deliveries and "supply chain constraints" taking their toll on the company's top and bottom lines.
In the three months ended June 30, Boeing's revenue fell 15 percent to $16.9 billion from $19.8 billion in the same period in 2023.
However, the more troubling figures were the company's losses.
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Boeing's core operating loss trebled to $1.39 billion from $390 million a year prior, while its net loss increasing nearly ten-fold to $1.43 billion from $149 million.
The company said that these lackluster results reflected "lower commercial delivery volume and losses on fixed-price defense development programs."
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Commercial plane deliveries fell 32 percent year-on-year to 92 from 136, Boeing said, while deliveries for the six months fell 34 percent to 175.
As revealed in its early July delivery report, Boeing has struggled to get 737s into customers' hands throughout 2024.
Deliveries of Boeing's best seller fell 32 percent to 70 planes in the second quarter from 103 the year before, while 787 deliveries more than halved to 9 from 20.
However, Boeing said that the 737 program "gradually increased production" during the three month period, and that it plans to increase monthly production of the 737 and 787 to 38 and five, respectively, by the end of the year.
Jonathan Root, lead Boeing analyst at Moody's Ratings, previously told Newsweek that increasing the production rate of both aircrafts was crucial for Boeing's continued success beyond 2024.
**"**Once inventories of these models are depleted by March 2025, the monthly production rates will dictate the number of deliveries in 2025 and beyond and light the path to the direly sought positive free cash flow the company needs to begin the long road to balance sheet recovery," Root said.
Boeing's also said that its Defense, Space & Security division struggled to cope amid "a slowdown of commercial production and supply chain constraints," resulting in a $913 million loss during the quarter, widened from $527 million a year before.
The company said it had suffered a $391 million loss on the KC-46A program alone, a transport aircraft for the U.S. military fashioned out of Boeing's 767 jet airliner.
Losses were also recorded on the T-7A Red Hawk pilot training system, VC-25B militarized 747, and the Commercial Crew space transportation programs, which it said were due to higher engineering and manufacturing costs, alongside "technical challenges."
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"Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future," said current president and CEO Dave Calhoun. "While we have more work ahead, the steps we're taking will help stabilize our operations and ensure Boeing is the company the world needs it to be."
The results coincide with the company announcing that Kelly Ortberg, former CEO and president of aerospace supplier Rockwell Collins will become Boeing's next CEO.
Ortberg's appointment will take effect on August 8, with Dave Calhoun bowing out before his originally scheduled end-of-year departure.
Ortberg said that he would put "safety and quality at the forefront" of Boeing's operations, with Chair Steve Mollenkopf adding that the nearly four-decade veteran of the aerospace industry had "the right skills and experience to lead Boeing in its next chapter."
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