Boeing announced a major executive shakeup with the departure of its CEO, chair of the board, and head of commercial airplanes, signaling a significant change in leadership. The company's new leadership team includes Steve Mollenkopf as the new chair of the board and Stephanie Pope as the head of the commercial airline division. The company's ability to increase production and improve quality control will be crucial for its cash flow and stock performance, with potential for significant profit growth if these issues are resolved.
China's home-grown C919 passenger jet made its international debut at the Singapore Airshow, securing 40 orders from Tibet Airlines and Henan Civil Aviation Development Investment Group. The aircraft, designed to compete with Boeing's 737 and Airbus' A320, is part of China's efforts to increase self-reliance in commercial jet manufacturing. The C919's appearance at the airshow highlights the ongoing progress in the development of China's commercial aircraft, with the majority of orders coming from Chinese airlines.
Boeing will not be showcasing any commercial planes at the Singapore Airshow, leaving the spotlight on Airbus and China's Comac C919. This comes after a decline in aircraft orders and deliveries following a midflight blowout of a fuselage panel on one of its 737 Max 9s. While Boeing will feature its defense capabilities and the 777X passenger plane, the absence of commercial jets marks the first major international aerospace event since the recent safety crisis. China's Comac C919 is anticipated to be a competitor to Boeing and Airbus, with industry experts seeing an opportunity for it amid Boeing's troubles. Despite the challenges, analysts expect Boeing's impact to be short-term, with higher deliveries expected in the coming years.
Airbus aims to deliver 800 commercial aircraft in 2024 despite ongoing supply chain challenges, with CEO Guillaume Faury highlighting the company's production ramp-up and healthy results. The company's strong performance contrasts with Boeing's struggles, as Airbus maintains a hefty order backlog for its A320 narrow-body jets. Airbus reported a 4% rise in adjusted earnings and plans to pay shareholders a special dividend, reflecting its growth prospects and strong balance sheet.
Boeing reported a net loss of $149 million for the second quarter, driven by losses in its defense and space businesses, despite a pickup in commercial aircraft deliveries. The company generated $2.6 billion of free cash, beating analyst forecasts, and reiterated its full-year guidance. Boeing delivered 136 planes in Q2, up from 121 in the same period last year, and plans to increase production of its best-selling Max aircraft to 38 jets per month. The company also raised output of its 787 Dreamliner aircraft and expects to deliver up to 80 of them in 2023.
Boeing reported a 28% increase in revenue to $17.9 billion in Q1 2023, beating analysts' estimates, and delivered 130 commercial aircraft in the same period. The company said a new production problem that will delay deliveries of its 737 jets to airlines this summer won't affect its overall financial outlook for the year.
