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Boeing posts surprise profit as aircraft demand rebounded from the pandemic slump

Boeing posts surprise profit as aircraft demand rebounded

July 29, 2021: -On Wednesday, Boeing reported its first quarterly profit in almost two years, boosted by increased deliveries of commercial jetliners as airlines started recovering from a pandemic slump and sales increase in other divisions.

The manufacturer snaps six consecutive quarters of losses, swinging to a profit of $567 million for the second quarter from a net loss of $2.96 billion a year sooner as air travel was plunging earlier in the pandemic.

Boeing’s revenue rose 44% to around $17 billion from $11.8 billion a year ago, 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, enabling by vaccine distribution and raising travel demand, particularly in domestic markets,” CEO Dave Calhoun said in an employee memo on Wednesday. “In the future, 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 last months with significant orders from customers such as United Airlines and Southwest Airlines, a vote of confidence in the plane that had been grounded worldwide until the previous November because of crashes in 2018 and 2019 that killed 346 people. Regulators released the ban after Boeing made changes to a flight-control system implicated in the crash.

Revenue also increased in Boeing’s global services unit as air traffic grew and demand for freighter conversions increased to cater to the air cargo boom.

The company struggles with problems in other programs, including its wide-body 787 Dreamliner. This month, Boeing slashed its delivery forecast for those planes and said it would pause handovers to airlines for the second time in lesser compared a year after finding one more manufacturing flaw on the aircraft.

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