Boeing said it is increasing the production of two of its popular aircraft, sending its shares higher as the company reported a smaller-than-expected loss for the second quarter.
Boeing is ramping up production of its 737 aircraft to 38 per month and intends to reach 50 per month by 2025/2026, with 400 to 450 planes to be delivered this year.
For its 787 Dreamliner, production increased to four per month with plans to ramp this up to five per month in late 2023 and 10 per month in the 2025/2026 timeframe.
Boeing expects to deliver 70 to 80 of these airplanes in 2023.
For 2Q, the company swung to a loss of $149 million or $0.82 per share, above the Street expectation of a loss per share of $0.88, per Refinitiv data.
Revenue also topped expectations at $19.8 billion, above the consensus estimate of $18.45 billion, which the company attributed to its delivery of 136 commercial aircraft, up from 121 in the year-ago quarter.
In the year-ago quarter, the company achieved a profit of $160 million or a loss per share of $0.37 share on revenue of $16.7 billion.
Boeing ended the second quarter with a total backlog of $440 billion, including 4,800 commercial airplanes.
"We had a solid second quarter with improved deliveries and strong free cash flow generation,” Boeing CEO Dave Calhoun said in a statement.
“We are well positioned to meet the operational and financial goals we set for this year and for the long term."
Shares of Boeing had added 3.6% at US$221.90 before the opening bell on Wednesday.
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