Boeing Co (NYSE:BA, ETR:BCO) has announced industry veteran Kelly Ortberg will take the helm next month as the plane maker grapples with mounting losses on the back of quality control issues.
Ortberg, who headed aerospace firm Rockwell Collins between 2013 and 2021, will succeed Dave Calhoun on August 8 after his retirement.
This comes as the US-based manufacturer announced an increase in operational losses from US$99 million to US$1.09 billion over the second quarter on Wednesday.
Revenue also declined over the quarter, by 15% to US$16,87 billion.
Boeing has faced growing pressure over its quality control checks since a door panel fell from an Alaska Air-operated 737 MAX 9 in January, prompting a slowdown in production.
The models were temporarily grounded following the incident, with investigations having been opened and other issues reported involving its 777s and 737-900s since.
Calhoun commented Boeing was making “substantial progress strengthening our quality management system” in Wednesday’s second-quarter results.
Falling revenues and growing losses reflect a drop in commercial delivery volumes, however, Boeing explained, alongside hits from fixed-price defence development programs.
Some 92 commercial jets were delivered over the quarter, against 136 a year earlier, with Boeing reiterating plans to ramp up production towards the end of the year.
Boeing also updated that the acquisition of supplier and former subsidiary Spirit AeroSystems was set to close midway through next year.
Calhoun added this was part of steps to “help stabilise our operations and ensure Boeing is the company the world needs it to be”.
Shares climbed 1.3% to US$189.26 in early trading.