Boeing posted a wider loss than feared for the second quarter early Wednesday with revenue also falling short, driven by weakness in its defense business. But the company burned less cash than expected and said it remains on track for positive free cash flow in 2022, as it ramps up commercial jet deliveries. It reported second-quarter revenue of $16.7 billion, GAAP earnings per share of $0.32 with the former falling short of Wall Street analyst estimates of $17.57 billion.
The aviation giant is working with safety regulators "on final actions" to resume 787 Dreamliner deliveries. Boeing also has raised 737 Max production to 31 per month, according to its Q2 earnings release Wednesday. It's an important moment for Boeing, whose widebody 787s were halted for more than a year due to manufacturing flaws. And after two fatal accidents, the narrow-body 737s were grounded globally for longer. Boeing's commercial airplane deliveries rose 53.2% compared to the year-ago quarter.
"We made important progress across key programs in the second quarter and are building momentum in our turnaround," said Dave Calhoun, Boeing President and Chief Executive Officer. "As we begin to hit key milestones, we were able to generate positive operating cash flow this quarter and remain on track to achieve positive free cash flow for 2022,” he added.
Why it matters
While Boeing's loss is concerning it can find solace in the fact that commercial air travel is picking up once again. It is evident that it's looking towards its commercial jet deliveries to fly itself out of trouble. With Airbus creating a bit of a storm with Emirates and other airlines, Boeing being able to resume production of its Dreamliner and 737 Max jets could provide welcome competition to a market looking to take to the skies after being grounded for nearly two years.