Boeing posts first profit since third quarter of 2019 thanks to jump in aircraft deliveries

boeing-posts-first-profit-since-third-quarter-of-2019-thanks-to-jump-in-aircraft-deliveries

A Boeing 737 MAX airplane lands after a test flight at Boeing Field in Seattle, Washington, U.S. June 29, 2020.

Karen Ducey | Reuters

Boeing reported its first quarterly profit in almost two years on Wednesday, boosted by a surge in deliveries of commercial jetliners as airlines began recovering from the pandemic.

The manufacturer snapped six consecutive quarters of losses to post net income of $567 million. Revenue was nearly $17 billion, compared with analyst estimates of $16.54 billion.

Here’s how the company performed compared with analysts’ estimates complied by Refinitiv:

  • Adjusted EPS: 40 cents vs a per-share loss of 83 cents.
  • Revenue: $17 billion vs. $16.54 billion.

Boeing shares jumped more than 3% in premarket trading after the company reported results.

Sales and deliveries of Boeing’s long-troubled 737 Max picked up in recent months with big orders from customers like United Airlines and Southwest Airlines, a vote of confidence in the plane that had been grounded worldwide until last November because of crashes in 2018 and 2019 that killed 346 people. Regulators lifted the ban after Boeing made changes to a flight-control system implicated in the crash.

Revenue also grew in Boeing’s global services unit as air traffic grew and demand for freighter conversions increased to cater to a boom in air cargo.

The company is still struggling with problems in other programs, including its wide-body 787 Dreamliner. Boeing earlier this month slashed its delivery forecast for those planes and said it would pause handovers to airlines for the second time in less than a year after finding another manufacturing flaw on the planes.

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