Boeing Reports First Quarterly Profit in Nearly 2 Years... Demand Recovery and Cargo Boom

Resumption of 737 Max Sales and Increasing Demand for Cargo Plane Conversions

[Asia Economy Reporter Yu Je-hoon] American aircraft manufacturer Boeing has ended its six consecutive quarters of losses and posted its first quarterly profit in about two years, CNBC reported on the 27th (local time).

According to the report, Boeing recorded $17 billion in sales in the second quarter. This is a 44% increase compared to the same period last year ($11.8 billion) and exceeds the market expectation of $16.5 billion.

Net profit also turned positive at $567 million. Boeing had posted net losses for six consecutive quarters, including a net loss of $2.96 billion in the early days of the COVID-19 pandemic last year, making this the first quarterly profit in nearly two years.

The background of this performance is attributed primarily to the resumption of sales of the B737 Max model, which had once become a liability due to crash accidents. After changing the flight control system related to the crashes, the U.S. aviation authorities lifted the ban, and in response, airlines such as United Airlines and Southwest Airlines recently placed large orders for the Max model, increasing sales volume.

CNBC also analyzed that the logistics crisis following the COVID-19 pandemic helped. With a surge in air cargo demand and increased demand for converting passenger planes into cargo planes, Boeing's global services division also saw increased revenue.

Dave Calhoun, Boeing's Chief Executive Officer (CEO), said in a message to employees on the day, "There is still a long way to go before a full recovery, but it is encouraging to see the market improving due to continuous vaccine distribution and increased travel demand," adding, "Going forward, Boeing will closely monitor key indicators for demand recovery such as COVID-19 infection rates and vaccine distribution."