A Boeing 737 MAX aircraft lands after a test flight at Boeing Field in Seattle, Washington, the United States, Jan.
Karen Ducey | Reuters
Boeing reported its first quarterly profit in nearly two years on Wednesday, helped by a surge in commercial aircraft deliveries as airlines recovered from a pandemic and sales in other businesses rose.
The manufacturer posted six consecutive quarters of losses, posting a profit of $ 567 million in the second quarter from a net loss of $ 2.96 billion a year earlier as air traffic plummeted at the start of the pandemic.
Boeing’s revenue rose 44% to nearly $ 17 billion from $ 11.8 billion a year ago, beating analyst estimates of $ 16.54 billion.
This is how the company developed compared to the analyst estimates carried out by Refinitiv:
- Adjusted EPS: 40 cents versus a loss of 83 cents per share.
- Revenue: $ 17 billion versus $ 16.54 billion.
Boeing shares rose more than 3% in pre-market trading after the company released the results.
“While we still have a way to go to a full recovery, it is encouraging to see the commercial market improve, made possible by continued vaccine distribution and increasing travel demand, particularly in domestic markets,” said CEO Dave Calhoun in an employee memo on Wednesday. “In the future, we will closely monitor case numbers, vaccine distribution, travel logs and world trade as key indicators of recovery.”
Sales and deliveries of the long-troubled Boeing 737 Max have risen in recent months with large orders from clients such as United Airlines and Southwest Airlines, a vote of confidence in the aircraft that lasted around the world until last November due to crashes in 2018 and 2019 shut down, 346 people were killed. Regulators lifted the ban after Boeing made changes to a flight control system that was involved in the crash.
Revenue also increased in Boeing’s global service unit as air traffic increased and demand for freighter retrofits increased to meet the air freight boom.
The company is still struggling with other programs, including its widebody 787 Dreamliner. Boeing cut its delivery forecast for these aircraft earlier this month and announced that it would suspend handovers to airlines for the second time in less than a year after discovering another manufacturing defect on the aircraft.