Boeing Reports Surprise Profit And Says It Will Cut Fewer Jobs

According to statistics revealed Wednesday, Boeing earned its first quarterly profit since 2019 as a result of a strengthening commercial aviation industry, which will allow the business to lose fewer employees than previously projected.

The aviation company recorded a $587 million profit in the second quarter, compared to a $2.4 billion loss in the same three months of 2020 during the height of the pandemic, sending Boeing’s stock soaring.

The results, which astonished experts who had predicted another loss, were the company’s first profit since the third quarter of 2019, before the coronavirus shut down the economy.

As Covid-19 vaccinations become available, commercial airlines are adjusting to accommodate rising travel demand.

Boeing CEO Dave Calhoun stated that the business will maintain its present workforce of 140,000, rather than the 130,000 announced earlier in the year.

In a message to employees, he mentioned “encouraging” industry recovery patterns.

“As the commercial market recovery accelerates, our defense and government services business pursues growth possibilities, and we expand expenditures to further strengthen engineering and drive quality and stability in our production system,” Calhoun added.

Boeing’s sales increased 44 percent year on year to $17 billion, with stronger operating earnings in defense, space, and security.

It also recorded a considerably smaller quarterly loss in its commercial aviation division, owing partly to the resumption of 737 MAX deliveries, which had been halted following a 20-month grounding following two catastrophic disasters.

Boeing also turned a profit in its worldwide services sector, which had lost money the previous year due to Covid-19 charges.

Despite the positive outcomes, Boeing continues to face scrutiny over its operations, most recently with the 787 Dreamliner. Boeing has paused deliveries and reduced manufacturing levels while the plane undergoes extra testing.

In pre-market trade, shares rose 5.4 percent to $234.30.

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