Boeing names new chief as it posts £1bn-plus loss in second quarter
31 July 2024, 13:14
Disappointing financial results come at a tumultuous time for the aircraft manufacturer.
Troubled aircraft manufacturer Boeing has lost more than 1.4 billion dollars (£1.08 billion) in the second quarter as it revealed that a long-standing industry figure will take over as chief executive next week.
Robert “Kelly” Ortberg, 64, a former head at Rockwell Collins, will succeed David Calhoun as chief executive, the company said.
Boeing’s loss was wider and its revenue was lower than Wall Street had expected. Revenue fell 15% from a year earlier, and both its commercial planes business and defence unit lost money.
The disappointing results come at a tumultuous time for Boeing. The company agreed to plead guilty to fraud in connection with the Max jetliner, two of which crashed, killing 346 people.
We’re pleased to announce Kelly Ortberg as Boeing’s new President and Chief Executive Officer.
Details here: https://t.co/qLYPKYHmLx pic.twitter.com/WnP33PTftK
— The Boeing Company (@Boeing) July 31, 2024
The US Federal Aviation Administration (FAA) has increased its oversight of the company following mistakes including the blowout of a panel on an Alaska Airlines jet.
It is pushing back against whistleblower allegations of manufacturing shortcuts that affect safety.
The company is dealing with supply-chain problems that are hindering production, which it hopes to fix in part by re-acquiring Spirit AeroSystems, a key contractor.
It is still trying to persuade regulators to approve two new models of the Max and a bigger version of its two-aisle 777 jetliner.
And it faces a multibillion-dollar decision on when to design a new single-aisle plane to replace the Max.
