Boeing posts 1Q loss, takes a hit on Air Force One work
Boeing Co. reported a wider than expected firstquarter loss on Wednesday and took another charge on its program to build two new Air Force One presidential planes after firing a contractor it hired to help perform the work.
The company did not provide a timetable for fixing the latest problem with its 737 Max jet, an electrical issue that has forced airlines to park more than 100 of the planes.
The combination of self-inflicted damage and a coronavirus pandemic that has depressed demand for new planes pushed Boeing to its sixth straight quarterly loss. However, CEO David Calhoun said the company is at an “inflection point,” with an increase in vaccinations against COVID-19 raising hopes for a rapid recovery in air travel that could translate to aircraft orders.
Boeing lost $561 million — $537 million attributable to shareholders. Revenue was roughly in line with Wall Street forecasts as the company generated cash by delivering more new airliners than it did a year ago.
After the quarter ended, Boeing suffered a new setback with its 737 Max jetliners, the grounding of dozens of the planes because of issues around electrical grounding of some parts. Boeing continues to say that the fix is simple and will take three or four days per plane once the Federal Aviation Administration approves Boeing’s repair method, but airlines including Southwest, American and United have now been without some of their Max jets for nearly a month with no certainty about when they will be able to use them again.