The company overall was able to turn a profit thanks to improved earnings from its other units. Last month, United Airlines booked the largest plane order in its history - for 270 737 Max jets.īoeing’s commercial airline business still lost money in the quarter, but it shaved its operating loss significantly, to $472 million from $2.7 billion a year ago. Still, expectations of a rebound in air travel is good news for Boeing. But international travel, a key to the many overseas airlines operations, remains stalled by pandemic-related measures limiting cross-border flights. Most major US airlines said they expect a return to profitability in the second half of this year. Business travel is expected to rebound in the fall. Among the cuts, Boeing closed a unionized plant in Washington that built the 787 Dreamliner and consolidated production to a non-union factory in South Carolina.Īir travel has rebounded in recent months, particularly in US domestic markets, with a surge of leisure travel this summer, driven by pent-up demand. The company had completed about about 16,000 of those job cuts before Wednesday’s announcement.Īlthough thousands of Boeing employees took voluntary buyout packages there where thousands who were involuntarily laid off. It announced a second reduction target of another 7,000 jobs in October. “Going forward, the pace of the commercial market recovery, trade relations with China and our own performance will be key enablers to overall employment levels,” he said in the message.īoeing first announced plans to cut 19,000 jobs in April of last year as air travel cratered and losses mounted. The company had previously announced plans to reduce its workforce to about 130,000 by the end of 2021. In a message to employees, Calhoun said Boeing will keep its workforce at its current level of approximately 140,000 employees due to “encouraging recovery trends.” “While our commercial market environment is improving, we’re closely monitoring Covid-19 case rates, vaccine distribution and global trade as key indicators for our industry’s stability,” he said.īut Calhoun did announce that the company is shelving plans to cut staff by another 10,000 workers this year. (BA) jumped 5% in midday trading on the news.īoeing CEO Dave Calhoun cautioned the company’s problems are not necessarily behind it. Analysts had forecast another loss of $161 million, and had not expected Boeing to return to profitability until later this year.īut revenue of $17 billion exceeded estimates by nearly $500 million, helping to lift results. Boeing returned to profitability in the second quarter, posting net income for the first time since the start of the Covid-19 pandemic last year, a recovery that will save 10,000 jobs at the company.īoeing earned $567 million in the quarter, compared to a $2.4 billion loss a year earlier.
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