Boeing’s main business – Boeing’s main business is the manufacture of aircraft (especially commercial passenger aircraft). In 2020, Boeing produced more than 900 aircraft per year, which means that one aircraft can be produced in less than 10 hours. By comparison, Airbus expects to deliver 700 commercial jets this year.
| Business segment | Scope |
| Boeing Commercial Airplane (BCA) | Manufacture and sales of 737, 747, 767, 777, 787, 797 and other large commercial aircraft |
| Defense, Space＆Security (BDS) | Defensive products, like A10, B-52, C-17, E-3A, F-15, MQ-25A, F-18, F-151, MH-6 helicopter, AH-64 Apache helicopter, P8, AGM-84 Harpoon anti-ship missile, etc. |
| Boeing Global Service (BGS) | Provide after-sales service for Boeing customers; including parts replacement, maintenance, technical support, product upgrades, product training, etc. |
| Boeing Capital (BCC) | Boeing’s venture business like acquisitions and investments. |
Does Boeing make profit?
Boeing Gross Profit 2010-2022 | BA Boeing annual/quarterly gross profit history and growth rate from 2010 to 2022. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services.
Boeing gross profit for the quarter ending December 31, 2022 was $1.864B, a 174.35% decline year-over-year. Boeing gross profit for the twelve months ending December 31, 2022 was $3.530B, a 15.78% increase year-over-year. Boeing annual gross profit for 2022 was $3.53B, a 15.78% increase from 2021. Boeing annual gross profit for 2021 was $3.049B, a 154.04% decline from 2020. Boeing annual gross profit for 2020 was $-5.642B, a 224.6% decline from 2019.
| Boeing Annual Gross Profit (Millions of US $) | |
|---|---|
| 2022 | $3,530 |
| 2021 | $3,049 |
| 2020 | $-5,642 |
| 2019 | $4,528 |
| 2018 | $19,706 |
| 2017 | $17,463 |
| 2016 | $14,529 |
| 2015 | $14,090 |
| 2014 | $14,079 |
| 2013 | $13,430 |
| 2012 | $13,142 |
| 2011 | $12,996 |
| 2010 | $12,623 |
| 2009 | $11,916 |
table>
Boeing Quarterly Gross Profit (Millions of US $) 2022-12-31 $1,864 2022-09-30 $-815 2022-06-30 $2,128 2022-03-31 $353 2021-12-31 $-2,507 2021-09-30 $1,719 2021-06-30 $2,419 2021-03-31 $1,418 2020-12-31 $-5,678 2020-09-30 $1,044 2020-06-30 $-1,160 2020-03-31 $152 2019-12-31 $-784 2019-09-30 $3,065 2019-06-30 $-2,043 2019-03-31 $4,290 2018-12-31 $6,269 2018-09-30 $4,124 2018-06-30 $4,739 2018-03-31 $4,574 2017-12-31 $4,906 2017-09-30 $4,294 2017-06-30 $4,362 2017-03-31 $3,901 2016-12-31 $4,524 2016-09-30 $4,008 2016-06-30 $2,446 2016-03-31 $3,551 2015-12-31 $2,946 2015-09-30 $4,265 2015-06-30 $3,210 2015-03-31 $3,669 2014-12-31 $3,773 2014-09-30 $3,727 2014-06-30 $3,392 2014-03-31 $3,187 2013-12-31 $3,417 2013-09-30 $3,474 2013-06-30 $3,383 2013-03-31 $3,156 2012-12-31 $3,280 2012-09-30 $3,236 2012-06-30 $3,284 2012-03-31 $3,342 2011-12-31 $3,328 2011-09-30 $3,402 2011-06-30 $3,372 2011-03-31 $2,894 2010-12-31 $3,173 2010-09-30 $3,263 2010-06-30 $3,074 2010-03-31 $3,113 2009-12-31 $3,472 2009-09-30 $2,250 2009-06-30 $3,390 2009-03-31 $2,804table>
Sector Industry Market Cap Revenue $125.876B $62.286B The Boeing Co. is one of the largest defense contractors in the U.S. for its premier jet aircraft along with varied defense products. Its customers include domestic & foreign airlines, the U.S. DoD, the Department of Homeland Security, the NASA, other aerospace prime contractors, and certain U.S. government and commercial communications customers. It has 4 segments. Boeing Commercial Airplanes Segment develops, produces & markets commercial jets, and support services. The 3 units that comprise the Boeing Defense, Space & Security (BDS) segment are as follows: Boeing Military Aircraft, Network and Space Systems and Global Services and Support. Boeing Global Services Segment brings together certain Commercial Aviation Services businesses and BDS businesses. It provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services. Boeing Capital Corp. Segment provides selective financing solutions for BDS segment government customers.Boeing Gross Profit 2010-2022 | BA
Where does Boeing make money from?
How Boeing makes money – Boeing makes money by designing and manufacturing aircraft for the commercial and military sectors. It also develops and builds weapons systems for the US DoD and the export market. Boeing is a diverse company, and its business model includes intelligence and strategic defense systems.
How is Boeing doing financially?
Boeing reported a $3.3 billion quarterly loss Wednesday as problems in its defense unit countered strides in its commercial aircraft business. The manufacturer, however, generated nearly $3 billion in free cash flow in the three months ended Sept.30, up from outflows of $507 million a year earlier.
Boeing reiterated its forecast to achieve positive free cash flow for the year. Boeing’s third quarter revenue rose 4% from last year to $15.96 billion, and its more than $3 billion quarterly loss widened compared with a $132 million loss a year earlier. The company’s shares fell nearly 9% to close at $133.79 on Wednesday after executives outlined a host of challenges through 2023, including labor and training hurdles and continued constraints on the company’s supply chain.
Boeing shares are down more than 33% this year. “We’re not anticipating or suggesting that the supply chain world is going to get much better in the near term,” CEO Dave Calhoun said Wednesday on the company’s quarterly. “We expect it will continue to be challenged over the course of 2023.” Here’s how Boeing performed in the third quarter compared with analysts’ estimates complied by Refinitiv:
Adjusted loss per share: $6.18 vs. expected earnings per share of 7 cents. Revenue: $15.96 billion vs. $17.76 billion expected.
The Arlington, Virginia-based company reported losses of $2.8 billion in its defense unit on programs including the KC-46 tanker and Air Force One. The company previously disclosed losses of more than $1 billion associated with modifying two 747 jumbo jets to serve as Air Force One, a contract negotiated under former President Donald Trump.
Calhoun had expressed regret about it in April. “It turns out the critics were right,” Calhoun told CNBC’s “Squawk Box” on Wednesday. “We didn’t get enough price, and that’s fairly obviously to all of us.” He said that the biggest issues with the Air Force One deal is that it’s a fixed-price contract and doesn’t take into account current inflation and other complexities.
A Boeing 737 MAX 10 airliner pauses while taxiing on the flight line before its first flight at Renton Municipal Airport on June 18, 2021 in Renton, Washington. Stephen Brashear | Getty Images “We’re squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions,” Calhoun wrote in an employee note Wednesday about its defense programs.
- The trouble in the defense unit has piled up as Boeing is trying to revive its commercial unit is recovering from the Covid pandemic, boosted by a rebound in air travel.
- Boeing’s commercial unit’s revenue rose 40% from a year ago to $6.26 billion.
- It delivered 112 planes in the third quarter, up from 85 a year earlier.
Deliveries of its 787 Dreamliner resumed in August after a pause for much of the previous two years to address a series of manufacturing flaws. Alaska Airlines on Wednesday said it would exercise options to buy 52 Boeing 737 Max planes for its fleet and rights for 105 more of them through 2030.
- The Seattle-based airline said the order was the largest in its 90-year history and the new planes will be used to replace older planes and for growth.
- But Calhoun and other aerospace executives have said supply chain problems and labor shortages are hindering increases in production.
- CFO Brian West said the company expects to hand over about 375 of its 737 airplanes this year, down from a January estimate that it would deliver around 500 of the jets to customers.
“We’re realistic about the environment we face and are taking comprehensive action,” Calhoun wrote to staff Wednesday. “Within our production facilities, we’re not pushing the system too fast. We’re slowing down when necessary and working hard to ensure work gets completed in sequence.” Boeing has struggled to stabilize after two crashes of its 737 Max, one almost four years ago in Indonesia and another in Ethiopia five months later, a crisis that grounded the jets around the world.
- The manufacturer is now trying to win federal regulator approval of new versions of that aircraft, the 737 Max 7 and 10, the smallest and largest in the family.
- But Boeing faces a year-end deadline to do so without adding additional alerting systems for pilots, under new legislation passed in the wake of the crashes.
“We remain confident that we can get an extension of that deadline because this is the safe answer,” CEO Calhoun said on a call with analysts Wednesday. “We remain not just hopeful but confident that we can get this across the finish line.”
How much does Boeing make?
Boeing Revenue 2010-2022 | BA Boeing annual/quarterly revenue history and growth rate from 2010 to 2022. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income.
Boeing revenue for the quarter ending December 31, 2022 was $19.980B, a 35.06% increase year-over-year. Boeing revenue for the twelve months ending December 31, 2022 was $66.608B, a 6.94% increase year-over-year. Boeing annual revenue for 2022 was $66.608B, a 6.94% increase from 2021. Boeing annual revenue for 2021 was $62.286B, a 7.1% increase from 2020. Boeing annual revenue for 2020 was $58.158B, a 24.04% decline from 2019.
| Boeing Annual Revenue (Millions of US $) | |
|---|---|
| 2022 | $66,608 |
| 2021 | $62,286 |
| 2020 | $58,158 |
| 2019 | $76,559 |
| 2018 | $101,127 |
| 2017 | $94,005 |
| 2016 | $93,496 |
| 2015 | $96,114 |
| 2014 | $90,762 |
| 2013 | $86,623 |
| 2012 | $81,698 |
| 2011 | $68,735 |
| 2010 | $64,306 |
| 2009 | $68,281 |
table>
Boeing Quarterly Revenue (Millions of US $) 2022-12-31 $19,980 2022-09-30 $15,956 2022-06-30 $16,681 2022-03-31 $13,991 2021-12-31 $14,793 2021-09-30 $15,278 2021-06-30 $16,998 2021-03-31 $15,217 2020-12-31 $15,304 2020-09-30 $14,139 2020-06-30 $11,807 2020-03-31 $16,908 2019-12-31 $17,911 2019-09-30 $19,980 2019-06-30 $15,751 2019-03-31 $22,917 2018-12-31 $28,341 2018-09-30 $25,146 2018-06-30 $24,258 2018-03-31 $23,382 2017-12-31 $24,770 2017-09-30 $24,223 2017-06-30 $23,051 2017-03-31 $21,961 2016-12-31 $22,211 2016-09-30 $23,898 2016-06-30 $24,755 2016-03-31 $22,632 2015-12-31 $23,573 2015-09-30 $25,849 2015-06-30 $24,543 2015-03-31 $22,149 2014-12-31 $24,468 2014-09-30 $23,784 2014-06-30 $22,045 2014-03-31 $20,465 2013-12-31 $23,785 2013-09-30 $22,130 2013-06-30 $21,815 2013-03-31 $18,893 2012-12-31 $22,302 2012-09-30 $20,008 2012-06-30 $20,005 2012-03-31 $19,383 2011-12-31 $19,555 2011-09-30 $17,727 2011-06-30 $16,543 2011-03-31 $14,910 2010-12-31 $16,550 2010-09-30 $16,967 2010-06-30 $15,573 2010-03-31 $15,216 2009-12-31 $17,937 2009-09-30 $16,688 2009-06-30 $17,154 2009-03-31 $16,502table>
Sector Industry Market Cap Revenue $126.292B $66.608B The Boeing Co. is one of the largest defense contractors in the U.S. for its premier jet aircraft along with varied defense products. Its customers include domestic & foreign airlines, the U.S. DoD, the Department of Homeland Security, the NASA, other aerospace prime contractors, and certain U.S. government and commercial communications customers. It has 4 segments. Boeing Commercial Airplanes Segment develops, produces & markets commercial jets, and support services. The 3 units that comprise the Boeing Defense, Space & Security (BDS) segment are as follows: Boeing Military Aircraft, Network and Space Systems and Global Services and Support. Boeing Global Services Segment brings together certain Commercial Aviation Services businesses and BDS businesses. It provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services. Boeing Capital Corp. Segment provides selective financing solutions for BDS segment government customers.Boeing Revenue 2010-2022 | BA
Does Boeing have a lot of debt?
Boeing Debt – Based on Boeing’s financial statement as of October 26, 2022, long-term debt is at $51.79 billion and current debt is at $5.43 billion, amounting to $57.22 billion in total debt. Adjusted for $13.49 billion in cash-equivalents, the company’s net debt is at $43.73 billion.
- Let’s define some of the terms we used in the paragraph above.
- Current debt is the portion of a company’s debt which is due within 1 year, while long-term debt is the portion due in more than 1 year.
- Cash equivalents includes cash and any liquid securities with maturity periods of 90 days or less.
- Total debt equals current debt plus long-term debt minus cash equivalents.
Shareholders look at the debt-ratio to understand how much financial leverage a company has. Boeing has $137.56 billion in total assets, therefore making the debt-ratio 0.42. As a rule of thumb, a debt-ratio more than 1 indicates that a considerable portion of debt is funded by assets.
Who is Boeing’s biggest customer?
At 75 aircraft orders, Ryanair was Boeing’s largest customer in 2020. Boeing aircraft orders as of December 31, 2020, by major customer.
| Characteristic | Number of aircraft orders |
|---|---|
| Ryanair | 75 |
| Virgin Australia Airlines | 25 |
| Unidentified | 25 |
How much of Boeing’s revenue is military?
Raytheon Government revenue share – As per Raytheon’s 2021 annual report, U.S. government sales made up 48% of total 2021 sales: Figure 6. Raytheon Sales Breakdown 2019-2021 Raytheon Technologies Form 10-K for 2021 Adding the 9% in foreign military sales through the U.S. government and the 8% in direct foreign government commercial sales, total government exposure in 2021 was 65%.
Who owns most of Boeing stock?
Top 10 Owners of Boeing Co
| Stockholder | Stake | Total value ($) |
|---|---|---|
| Newport Trust Co. | 7.55% | 6,409,690,796 |
| The Vanguard Group, Inc. | 7.23% | 6,137,527,763 |
| SSgA Funds Management, Inc. | 4.40% | 3,739,535,365 |
| BlackRock Fund Advisors | 4.05% | 3,440,687,620 |
Is Boeing losing money?
How does Boeing make money? – Boeing breaks down its revenue into four different segments:
- Commercial airplane deliveries. This division is responsible for the development and manufacturing of commercial airplanes. The quarterly revenue for this division increased to $6.3 billion thanks to the delivery of nine 787s. The program is currently producing at a lower rate than normal, and the company hopes to return to 5 planes per month.
- Defense, space, and security. This sector includes the research, development, and manufacturing of military weapons and aircraft. The largest customer here is the U.S. Department of Defense. Revenue for the third quarter in this sector dropped to $5.3 billion. This translated to $2.8 billion worth of losses due to fixed-price contracts.
- Global services. This sector offers platforms, systems, and services to defense and commercial customers globally. This division also involves the management of the supply chain, maintenance, engineering, pilot training, and digital services. Third quarter revenue went up to $4.4 billion, and the operating margin was up to 16.5% thanks to a higher volume of commercial services.
- Boeing capital. The company offers financing options for its customers, ranging from equipment sold under finance leases, operating leases, notes, and receivables. The net portfolio balance for the end of the quarter was $1.6 billion.
Does Boeing have a future?
GETTING ON TRACK – Several weeks after disclosing its performance in the third quarter, Boeing executives revealed a recovery roadmap to investors. The near-term focus will be addressing supply and labour problems and increasing aircraft production and delivery rates.
- Boeing has also been working to bring the 737 Max 7 and Max 10, and the 777-9 through certification.
- In 2023, Boeing aims to deliver 400-450 737s – up from an estimated 375 in 2022 – and 70-80 787s.
- Boeing has had recent positive momentum on the Dreamliner programme, having resumed deliveries in August following a halt lasting most of the preceding 22 months.
It had delivered 15 787s by the end of October, the most recent month for which the manufacturer has released data. 
Source: British Airways Executives also see a path for Boeing by 2025 or 2026 to be delivering about 800 aircraft and generating $100 billion in revenue annually. That would return Boeing – which reported revenue of $62 billion in 2021 – to its stature in 2018, when it posted $101 billion in revenue and delivered 806 aircraft.
“I want nothing more than to return money to you,” chief financial officer Brian West told investors. To hit 800 annual deliveries, Boeing aims to produce 50 737s, four 777s and 10 787s each month. Some financial analysts are reassured that the plan rests on ensuring the long-term success of the 737 programme, which Ferguson calls BCA’s “most important programme – the moneymaker”.
“Everything else has little to no contribution to profits. So the 737 programme has to get going,” he says.
Is Boeing financially healthy?
Boeing Co Financial Strength Calculation – GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.1.
The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better. Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense, Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt.
It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense: Boeing Co’s Interest Expense for the months ended in Dec.2022 was $-632 Mil. Its Operating Income for the months ended in Dec.2022 was $-368 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec.2022 was $51,811 Mil.
- Boeing Co’s Interest Coverage for the quarter that ended in Dec.2022 is Boeing Co did not have earnings to cover the interest expense.
- The higher the ratio, the stronger the company’s financial strength is.2.
- Debt to revenue ratio.
- The lower, the better.
- Boeing Co’s Debt to Revenue Ratio for the quarter that ended in Dec.2022 is 3.
Altman Z-Score, Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations. The zones of discrimination were as such: When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones. When Z-Score is between 1.81 and 2.99, it is in Grey Zones. Boeing Co has a Z-score of 1.26, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years. Warning Sign: Altman Z-score of 1.26 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company’s associated stock exchange currency.
What makes Boeing successful?
Defense, Space and Security (BDS) – Boeing’s BDS segment researches, develops, produces, and modifies military aircraft and weapons systems for strike, surveillance, and mobility. The segment also researches, develops, produces, and modifies strategic defense and intelligence systems, as well as satellite systems.
What is the highest paying job at Boeing?
Highest Paying Jobs At Boeing
| Rank | Job Title | Average Boeing Salary |
|---|---|---|
| 1 | Program Manager | $108,587 |
| 2 | Design Technician | $101,276 |
| 3 | Project Manager | $97,791 |
| 4 | Engineering Scientist | $96,377 |
What are Boeing’s weaknesses?
2. Weaknesses of Boeing – Weaknesses are the internal elements that put the company at a disadvantage. Let’s take a glance at some points given below-
Labour issues: Boeing has approximately 38 per cent of its total workforce as a neighbourhood of a labour union which causes work stoppages from time to time. This affects productivity and hence delivery on time becomes a haul. This also affects a relationship with the purchasers.
Higher Dependency on US Government contracts: The US government forms a significant neighbourhood of Boeing’s total sales. In FY 2015, it formed about 27% of the entire sales. But long-term government contracts are subject to varied political and economic factors and hence over-dependency on our government are often a threatening factor.
Flawed and Unsafe Design: In 2019, Boeing 737 Max crashed twice within the Java Sea and Ethiopia killing all aboard. Both planes suffered an equivalent malfunction attributed to a flaw in Boeing’s design of the 737 Max. Boeing’s flawed and unsafe design of 737 may be a major weakness. Over-Outsourcing: Boeing outsources the manufacturing of many of its planes’ components and parts. Spirit Airlines recently let off 2800 employees who worked mostly on the faulty 737 Max, highlighting the scope of Boeing’s outsourcing. Supply Chain Issues: Boeing, like any other global operator, has many supply chain issues as a result of its management practices. This is a big flaw, especially for Boeing, which is largely reliant on suppliers.
Which company owes the most money?
2016 Top 20
| Rank | Company | Country |
|---|---|---|
| 1 | AT&T | United States |
| 2 | Volkswagen AG | Germany |
| 3 | Verizon Communications | United States |
| 4 | Toyota | Japan |
Which airline uses the most Boeing?
Airline operators – There were 865 Boeing 787 aircraft in airline service as of November 2022, comprising 353 787-8s, 477 787-9s and 35 787-10s. The largest operators were All Nippon Airways (74), United Airlines (64), American Airlines (50), Japan Airlines (47), Etihad Airways (39), Hainan Airlines (38), Air Canada (37), Qatar Airways (37), British Airways (35), Air India (27), Ethiopian Airlines (27), and other airlines operating fewer numbers of the type.
| Legend | Notes |
|---|---|
| * | Current |
| * | Former |
| Orders |
table>
Airline Country First commercial service Photo 787-8 787-9 787-10 Notes Aeroméxico Mexico September 24, 2013 8 10 Air Astana Kazakhstan 3 3 To be delivered by 2025 Air Austral Réunion June 10, 2016 2 Air Canada Canada May 23, 2014 8 29 Air China China May 26, 2016 14 Air Europa Spain April 1, 2016 10 12 Air France France January 9, 2017 10 Air India India September 19, 2012 27 Air New Zealand New Zealand August 9, 2014 14 8 Launch customer of 787-9 Air Premia South Korea March 31, 2021 3 Air Tahiti Nui French Polynesia November 1, 2018 4 Air Tanzania Tanzania July 29, 2018 2 All Nippon Airways Japan October 26, 2011 36 40 3 Launch customer of 787-8 Largest 787 operator American Airlines United States May 7, 2015 32 22 Arik Air Nigeria 9 Arke Netherlands June 8, 2014 3 Rebranded to TUI fly Netherlands in 2015 Avianca Colombia January 16, 2015 13 1 Azerbaijan Airlines Azerbaijan March 1, 2015 2 Bamboo Airways Vietnam January 1, 2020 3 Biman Bangladesh Airlines Bangladesh September 5, 2018 4 2 British Airways United Kingdom August 9, 2013 12 18 5 China Airlines Taiwan 16 To be delivered by 2025 China Eastern Airlines China November 1, 2018 3 China Southern Airlines China June 7, 2013 10 17 EgyptAir Egypt February 31, 2019 6 El Al Israel August 23, 2017 3 12 Emirates United Arab Emirates 30 To be delivered by 2025 Ethiopian Airlines Ethiopia August 16, 2012 19 8 Etihad Airways United Arab Emirates February 1, 2015 30 9 EVA Air Taiwan November 1, 2018 4 6 Ghana Airways Ghana 3 Gulf Air Bahrain June 15, 2018 7 Hainan Airlines China July 8, 2013 10 28 Hawaiian Airlines United States 12 To be delivered by 2023 Iraqi Airways Iraq 10 Japan Airlines Japan April 22, 2012 25 22 Jetairfly Belgium December 8, 2013 1 Rebranded to TUI fly Belgium in 2016 Jetstar Australia November 13, 2013 11 Juneyao Airlines China October 25, 2018 6 Kenya Airways Kenya June 4, 2014 9 KLM Netherlands November 23, 2015 13 7 Korean Air South Korea March 7, 2017 1 10 20 787-8 is BBJ configuration LAN Airlines Chile October 1, 2012 10 10 Rebranded to LATAM Chile in 2016 LATAM Brasil Brazil September 21, 2021 1 LATAM Chile Chile May 5, 2016 10 18 LOT Polish Airlines Poland December 14, 2012 8 7 Lufthansa Germany August 29, 2022 2 MIAT Mongolian Airlines Mongolia 1 Neos Italy December 25, 2017 6 Norse Atlantic Airways Norway December 20, 2021 3 9 Norse Atlantic UK United Kingdom July 10, 2022 1 Norwegian Air Sweden Sweden April 10, 2019 3 Norwegian Air UK United Kingdom July 20, 2016 24 Ceased operations in 2021 Norwegian Long Haul Norway May 29, 2015 8 13 Ceased operations in 2021 Okay Airways China 5 Oman Air Oman October 17, 2015 2 7 Qantas Australia December 25, 2017 11 Qatar Airways Qatar November 20, 2012 30 9 Royal Air Maroc Morocco January 20, 2015 5 4 Royal Brunei Airlines Brunei October 18, 2013 5 Royal Jordanian Jordan September 1, 2014 7 Ruili Airlines China 6 Saudia Saudi Arabia March 11, 2016 13 5 Scoot Singapore February 5, 2015 10 10 Shanghai Airlines China October 1, 2018 7 Singapore Airlines Singapore May 3, 2018 15 Launch customer of 787-10 Suparna Airlines China December 15, 2018 1 2 787-8 transferred to Hainan Airlines Thai Airways Thailand July 25, 2014 6 2 TUI Airways United Kingdom July 8, 2013 8 5 TUI fly Belgium Belgium October 19, 2016 2 TUI fly Netherlands Netherlands October 1, 2015 3 TUI fly Nordic Sweden September 21, 2021 1 Turkish Airlines Turkey July 8, 2019 15 United Airlines United States November 4, 2012 12 38 16 Uzbekistan Airways Uzbekistan September 5, 2016 7 Vietnam Airlines Vietnam August 4, 2015 11 4 Virgin Atlantic United Kingdom October 28, 2014 17 Vistara India February 29, 2020 3 WestJet Canada April 28, 2019 7 Xiamen Airlines China September 3, 2014 6 6 ZIPAIR Tokyo Japan October 16, 2020 4Data as of August 2021.
Why is Boeing so popular?
Improving with later variants – These design advantages eventually made the 737 a success, but initial uptake was still slow. The 737-100 and 737-200 were slow to sell, and it wasn’t until after the 1970s oil crisis that sales of the 737-300 model, with new engines, significantly picked up.
- By the early 1990s, the Airbus A320 had started to offer serious competition.
- The Next Generation series (737-600, 737-700/-700ER, 737-800, and 737-900) was the response to this, with more efficient operation, higher capacity and longer range.
- These new models continued to reflect demand seen from customers.
The 737-800 became the highest selling 737 family member, and its success is typical of that of the whole family. Its success lies in its flexibility and compromise. It doesn’t have the longest range or the highest passenger capacity on the market, but its compromise between the two has made it an excellent all-round choice for airlines. The 737-800 has been the most popular 737 family member – a great example of compromise being a recipe for success. Photo: Getty Images This flexibility, and the strong record of reliability, has appealed to many new airlines and low costs carriers as well.
Is Boeing losing money?
How does Boeing make money? – Boeing breaks down its revenue into four different segments:
- Commercial airplane deliveries. This division is responsible for the development and manufacturing of commercial airplanes. The quarterly revenue for this division increased to $6.3 billion thanks to the delivery of nine 787s. The program is currently producing at a lower rate than normal, and the company hopes to return to 5 planes per month.
- Defense, space, and security. This sector includes the research, development, and manufacturing of military weapons and aircraft. The largest customer here is the U.S. Department of Defense. Revenue for the third quarter in this sector dropped to $5.3 billion. This translated to $2.8 billion worth of losses due to fixed-price contracts.
- Global services. This sector offers platforms, systems, and services to defense and commercial customers globally. This division also involves the management of the supply chain, maintenance, engineering, pilot training, and digital services. Third quarter revenue went up to $4.4 billion, and the operating margin was up to 16.5% thanks to a higher volume of commercial services.
- Boeing capital. The company offers financing options for its customers, ranging from equipment sold under finance leases, operating leases, notes, and receivables. The net portfolio balance for the end of the quarter was $1.6 billion.
Is Airbus or Boeing more profitable?
Airbus vs Boeing Airbus and Boeing, two of the world’s largest plane makers, revealed their financial results for the first six months of 2022. According to data from financial reports, Boeing accumulated slightly more revenue than Airbus during the first half of 2022.
Boeing’s revenues fell slightly to $30.7 billion in H1 2022 in contrast to $32.2 billion during the first half of 2021. Meanwhile, Airbus’ consolidated revenues grew narrowly during the first half of 2022, with $24.8 billion accumulated in contrast to $24.6 billion during the same period the previous year.
In terms of net income, Airbus clearly led the way during the first half of 2022. In H1 2022, Airbus reported a net income of $1.9 billion, whereas Boeing posted a net loss of $1 billion. Boeing’s negative results were driven by “lower defense volume and unfavorable performance”, the report said.
Additionally, Boeing is awaiting approval from the US Federal Aviation Administration (FAA) to restart Dreamliner deliveries after they were halted in 2021 over manufacturing issues. Boeing said it still expects total one-off costs of approximately $2 billion due to issues with the 787, with most set to be incurred by the end of 2023.
It acquired costs of $283 million for the 787 in the second quarter. It is also worth noting that H1 2021 was a better period than H1 2022 for both manufacturers. Airbus reported a net profit of $2.2 billion, while Boeing reported $6 million. In the financial report, Airbus said it had a “solid” H1 2022 financial performance but warned about “supply chain challenges” which led the manufacturer to adjust the A320 Family ramp-up steps and now targets a monthly rate of 65 in early 2024, around six months later than previously planned.
Is the Boeing 787 profitable?
No profits on the 787 – The 787 Dreamliner charges included a $3.5 billion write-off to cover what Boeing will have to pay as compensation to airlines for the delivery delays that it says extend further than previously anticipated. In addition, Boeing is absorbing another $2 billion in abnormal 787 manufacturing costs resulting from the low production rate and the rework on previously completed airplanes.
- Boeing said most of those costs will be incurred through the next two years, with $285 million recorded in the fourth quarter.
- That’s up from Boeing’s estimate in the fall that fixing the 787 manufacturing flaws would add about $1 billion in abnormal manufacturing costs.
- The write-off acknowledges that the 787 program now won’t cover the accumulated costs of producing the jet.
Even excluding the massively swollen cost of developing the jet between 2003 and 2011 — estimated at north of $15 billion — and considering only production costs since then, Boeing is conceding that the 787 won’t be profitable in the foreseeable future.
Analyst Nick Cunningham of Agency Partners in the U.K. wrote to investors Wednesday that “the 787 issue keeps on expanding and extending in duration.” Dreamliner deliveries initially halted in fall 2020 when engineers discovered unacceptable gaps between fuselage sections, A few deliveries resumed in March 2021, only to stop again in May as the Federal Aviation Administration raised questions about Boeing’s plan for inspecting the airplanes for the defects.
In October, an Italian 787 supplier was found to have installed faulty titanium parts, In November, the FAA cataloged a growing litany of 787 defects that needed investigation, including small gaps in the structure surrounding the passenger and cargo doors.
CFO West said that at the end of 2021, a total of 110 completed Dreamliners were parked in storage awaiting delivery. He said the rework on every one of those aircraft includes a “pretty labor-intensive rework solution on the door surrounds.” Rather than stipulate a time frame when it expects 787 deliveries to resume, Calhoun said that Boeing will take the time needed to get it right and wait for approval from the FAA.
“While we never want to disappoint our customers or miss expectations, the work we’re putting in now will build stability and predictability going forward,” Calhoun wrote in his memo to employees. Analysts have cautioned investors that 787 deliveries may not resume in the first half of this year.
- Last week, American Airlines and United Airlines during their quarterly earnings calls gave their expectations on taking delivery of 787s.
- United’s executive vice president, Gerry Laderman, said he doesn’t expect to receive any until “after the summer.” American’s chief financial officer, Derek Kerr, was more optimistic when he specified “mid-April” for that airline’s next delivery.
While both Calhoun and West declined to offer formal guidance on timing, Calhoun told analysts the airlines know everything Boeing knows and he indicated that the American Airlines estimate of mid-April is reasonable.
What is the most profitable airline company?
Final thoughts – The airline industry is a fierce market with heavy competition. It is also quite volatile as it is easily impacted by various factors such as travel restrictions, airline employee strikes, and natural disasters. Yet, despite the setbacks, some of the most profitable airlines benefit from returning travel-hungry customers and they continue to thrive better than before.
