After the downturn in 2020 due to the suspension of operation of the Boeing 737 Max and the large losses of the aviation industry in the pandemic, the company is gradually restoring business.
Aircraft manufacturer Boeing has reported a quarterly profit for the first time in almost two years. According to the reports published on July 28, the aircraft manufacturer's profit for the second quarter was $567 million. The increase in the supply of commercial airliners contributed to the improvement of financial indicators, as airlines are gradually restoring their business after the downturn in the pandemic, CNBC notes.
After the release of the reports, Boeing shares rose by 5.12% to $233.65 in the premarket.
Earlier, the company recorded losses for six consecutive quarters. In the second quarter of last year, Boeing's loss was $2.96 billion.
Boeing's revenue for the quarter increased by 44%, to almost $17 billion, which is higher than analysts ' forecasts of $16.54 billion. Last year, this figure was $11.8 billion. Boeing also exceeded forecasts for adjusted earnings per share вЂ” for the quarter it amounted to $0.4 against a loss of $0.83 expected by analysts.
вЂњAlthough we are still on our way to full recovery, it is encouraging to see an improvement in the state of the commercial market due to the spread of vaccines and increased demand for travel, especially in domestic markets. We will continue to closely monitor such key indicators of market recovery as the level of morbidity, vaccination, and the state of world trade,вЂќ Boeing CEO Dave Calhoun said in a memo to employees.
Sales and deliveries of the Boeing 737 Max, which is problematic for the company, have increased over the past few months due to large orders from customers such as United Airlines and Southwest Airlines. The operation of this aircraft was suspended worldwide until November last year due to accidents involving it in 2018 and 2019, as a result of which 346 people were killed. As a result, the company's net loss for 2020 amounted to $11.94 billion вЂ” this is the largest loss in the entire history of Boeing.
The company also faced difficulties in the production of another of its products вЂ” the wide-body 787 Dreamliner. In July, Boeing lowered its delivery forecast for these aircraft and announced that it would suspend their transfer to airlines вЂ” for the second time in less than a year-as another manufacturing defect was found in the model.