Boeing posts bigger-than-expected Q2 loss as Air Force One costs rise by $280 million
A Boeing 737 MAX aircraft. (AP Photo) Air Force One programme hits Boeing earnings Cash flow improves despite losses Trump’s temporary Air Force One aircraft
A Boeing 737 MAX aircraft. (AP Photo) Air Force One programme hits Boeing earnings Cash flow improves despite losses Trump’s temporary Air Force One aircraft FAA flags seat installation issue on 737 MAX jets Boeing reported a larger-than-expected second-quarter loss on Tuesday as higher costs linked to the delayed Air Force One replacement programme weighed on its results.The US planemaker, however, reported positive free cash flow and maintained its annual guidance as it works to stabilise operations and increase aircraft production.According to news agency Reuters, Boeing took a $280 million charge on the Air Force One replacement programme due to higher engineering costs needed to complete two delayed presidential aircraft by 2028.The charge contributed to a net loss of $428 million in the second quarter.The company reported an adjusted loss of 76 cents per share, wider than analysts' expectation of a 30-cent loss per share, according to LSEG data.However, the loss was narrower compared with the $1.24 per share loss reported in the same quarter last year.The two 747-8 aircraft, being developed under a $3.9 billion fixed-price contract signed in 2018, are now around four years behind schedule and more than $1 billion over budget.Despite the quarterly setback, Boeing generated $631 million in free cash flow, compared with a negative $200 million during the same period last year.The company said the improvement was partly driven by higher-than-expected customer payments.Boeing retained its full-year free cash flow forecast of $1 billion to $3 billion, which would mark its first positive annual cash flow result since 2023.
The company is also increasing production of its best-selling 737 MAX narrow-body jets as part of its recovery efforts.Capital spending rose during the quarter, mainly due to expansion of 787 production capabilities in South Carolina and military aircraft production facilities in the St Louis, Missouri, region.Meanwhile, US President Donald Trump has been using a Qatari-donated 747-8 aircraft as a temporary Air Force One replacement. Trump said
the aircraft would soon be sent for upgrades after concerns were raised over its security features.In a separate development, the US Federal Aviation Administration (FAA) has proposed a directive requiring checks and fixes on hundreds of Boeing 737 MAX jets registered in the US after finding that some passenger seats may have been incorrectly installed.The FAA said the issue could cause seats to detach during an
The BriefWire