[Asia Economy Reporter Yujin Cho] Boeing, which had suffered six consecutive quarters of losses due to production halts caused by structural defects in its flagship '737 Max' passenger aircraft and the COVID-19 pandemic, succeeded in turning a profit in the second quarter of this year.
On the 28th (local time), Boeing announced in its Q2 earnings report that it recorded a net profit of $567 million (approximately 650 billion KRW), reversing from a loss of $2.395 billion in the same period last year.
Earnings per share were 40 cents, while Wall Street had expected Boeing to post a loss of 83 cents per share this quarter.
During the same period, revenue surged 44% to $16.998 billion compared to $11.87 billion in the same quarter last year.
With this, Boeing overcame six consecutive quarters of losses from Q4 2019 through Q1 this year and achieved a turnaround to profitability.
Revenue also recovered to pre-COVID-19 levels in Q2 after sharply declining from $17.91 billion in Q4 2019 to $15.22 billion in Q1 this year.
Boeing's improved performance is attributed to the recovery in demand for commercial aircraft. As vaccination rates increase and economies reopen, demand for air travel has begun to recover, leading major U.S. airlines to increase their orders for new passenger aircraft.
During Q2, the number of new aircraft deliveries totaled 79, including 47 units of the flagship 737 Max, approximately four times (295%) higher than 20 units in the same period last year. Accordingly, related revenue increased 268% to $6.015 billion compared to $1.633 billion in the same period last year.
Boeing expects the global aviation market to reach a turning point this year due to the widespread distribution of COVID-19 vaccines.
David Calhoun, Boeing's Chief Executive Officer (CEO), said on the day, "We made significant progress in Q2," adding, "We plan to gradually increase monthly production to 31 units by early next year while monitoring market conditions."
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