Boeing reports Q1 loss, aims for production increase

Boeing, the troubled aviation giant, reported a first-quarter loss of $343 million due to recent safety issues impacting production and deliveries. The company slowed down production in the 737 program following a near-catastrophic incident on an Alaska Airlines jet in January. This incident led to scrutiny from regulators and customers, prompting Boeing to take immediate actions to improve quality.

Boeing's commercial airplane business faced operating losses, partly due to customer considerations following the temporary grounding of the 737 MAX 9. The company's defense space and security division, however, reported operating profitability despite losses on certain defense programs.

Boeing announced operational changes to enhance collaboration with Spirit AeroSystems, a key contractor. The investigation into the Alaska Airlines incident revealed missing bolts on the door plug, leading Boeing to slow down MAX production to ensure a 'clean' fuselage.

Despite challenges, Boeing aims to increase MAX production to 50 per month, with plans to restore output to 38 per month in the second half of 2024. The company expects to achieve profitable cash flow for the year, with a target of $10 in annual free cash flow by 2025 or 2026.

Boeing's efforts to address systemic quality-control issues have included leadership changes, with Qualcomm CEO Steve Mollenkopf set to become the new chair. The company is also considering reacquiring Spirit, which it spun off in 2005.

In response to the Alaska Airlines incident, Wall Street analysts have revised earnings estimates, leading to a significant decline in Boeing's stock value. Despite challenges, Boeing remains optimistic about its recovery and future prospects.