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Boeing Leaps on Finally Achieving Profit
Boeing (NYSE:BA) 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 a pandemic slump and sales rose in the company's other divisions.
The plane manufacturer snapped six consecutive quarters of losses, swinging to a profit of $567 million for the second quarter from a net loss of $2.96 billion in the quarter a year ago as air travel was plunging early in the pandemic.
Boeing's revenue rose 44% to nearly $17 billion from $11.8 billion a year earlier, beating analyst estimates of $16.54 billion.
"While we still have a ways to go before a full rebound, it is encouraging to see the commercial market improving, enabled by continued vaccine distribution and increasing travel demand, particularly in domestic markets," CEO Dave Calhoun said in an employee memo Wednesday.
"Going forward, we will closely monitor case rates, vaccine distribution, travel protocols and global trade as key indicators for recovery."
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 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.
BA shares got lift of $13.23, or 6%, to $235.50.
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