Boeing reported a $1.44 billion loss for the June quarter, partly due to troubles in its commercial and military jet division|Clemens Vasters|CC BY 2.0
Boeing, the planemaker riddled with incidents, announced yesterday it appointed aerospace veteran Robert Ortberg as its next CEO. He will be expected to lead the company through a pivotal period.
Boeing’s shares rose 3% following the news.
Ortberg takes on the role as Boeing grapples with significant challenges. The company reported a core operating loss of $1.4 billion in the second quarter—more than triple the loss from a year ago—and a 15% revenue drop to $16.86 billion. According to the Wall Street Journal, the planemaker has lost ~ $25 billion since 2020.
The plane manufacturer has been having issues
Boeing’s 737 Max production has faced increased scrutiny, particularly after a January incident involving Alaska Airlines that saw a door plug blow out mid-flight, leading to stricter inspections and production limits.
The crisis led to the grounding of 737 Max 9 planes and increased inspections by the Federal Aviation Administration (FAA).
The company saw a 32% decline in commercial airplane deliveries and reported a 15% overall sales decline.
The plane manufacturer also sees a high operating monthly cost of ~$1 billion.
Ortberg’s role involves rebuilding trust with regulators and ramping up 737 Max production. By year-end, the aim is to produce 38 Max jets monthly (compared to 25 monthly).
His compensation includes a $1.5 million base salary, a $3 million annual incentive, and a $17.5 million long-term award.