Boeing announced a net loss higher than market expectations in the third quarter, and revised downwards the volume of deliveries of 737 MAX for 2023 due to manufacturing problems at its supplier Spirit AeroSystems.
Between July and September, Boeing earned revenue of $18.10 billion, an increase of 13% year-on-year, which corresponds to analysts’ consensus. On the other hand, the aircraft manufacturer posted a net loss of $1.64 billion over the quarter when analysts expected a loss of “only” $1.5 billion. Despite the net loss, Boeing maintained its goal of generating $3 billion to $5 billion in free cash flow this year.
Boeing had planned to deliver 400 to 450 single-aisle 737 MAX aircraft in 2023, but was forced to reduce that target to 375 to 400 planes after two separate quality problems at Spirit AeroSystems, which makes the planes’ fuselages. “ The estimate of the cost associated with carrying out the repair work is intangible and has been included in the third quarter results », indicated the aircraft manufacturer in its press release, to explain the net loss higher than expectations. It nevertheless confirmed that it would maintain its production rate objective of 38 examples of the 737 MAX per month by the end of the year, and 50 each month by 2025/2026.
Also, Boeing plans to deliver at least 70 long-haul 787 Dreamliners in 2023, increasing from a production rate of four to five aircraft per month, to reach 10 units each month by 2025/2026.