Latest news with #787Dreamliner
Int'l Business Times
3 days ago
- Business
- Int'l Business Times
Boeing CEO Confident US Will Clear Higher MAX Output In 2025
Boeing is eyeing approvals for significantly higher production of the 737 MAX in 2025 after US authorities allowed increased output on the 787 plane, the company's CEO said Thursday. Boeing CEO Kelly Ortberg said the company could win US approval to raise MAX output at mid-year and again at the end of 2025. The faster than expected timeframe boosted shares. The Federal Aviation Administration in the last month green-lighted Boeing to produce seven 787 Dreamliner planes per month, up from five, Ortberg said at a financial conference. The FAA review is "the same process we're going to use for the 737 MAX increase," Ortberg said. "So I feel pretty good, and we talked with the FAA extensively to make sure we're aligned." The FAA has currently capped Boeing's MAX production at 38 per month. The agency began more closely monitoring Boeing's production processes following a January 2024 incident on an Alaska Airlines plane in which a window panel blew out mid-flight. The Alaska Airlines incident was the most significant involving a MAX plane since two fatal crashes in 2018 and 2019 spawned numerous lawsuits and government probes. Ortberg was recruited to Boeing last August following a leadership shakeup. Boosting plane output is essential to returning Boeing to profitability after a series of losses. Ortberg is targeting a mid-year FAA approval to 42 per month for the MAX in light of improved production processes. That could set the stage for an FAA approval to 47 per month around the end of 2025, although the company would not begin producing that many planes in 2025, he said. "Having said that, if we're not ready we won't do it," Ortberg said. "Key performance indicators have to be there for us to move to the next rate. And you don't know where you are until you move there, so we'll see how things progress." Ortberg also said Boeing was on track to complete FAA certification on the 777X and of new versions of the 737 MAX. On tariffs, Ortberg reiterated that the company's bigger worry surrounds potential retaliation from trading partners rather than the impact of the levies on manufacturing supplies. He said China had reversed a ban on airlines accepting Boeing planes following the deescalation of the trade war between Washington and Beijing. "The first deliveries will be next month," Ortberg said of Chinese carriers. Shares of Boeing jumped 4.4 percent in morning trading.
Yahoo
4 days ago
- Business
- Yahoo
3 Reasons Boeing Stock Is a Buy
The first-quarter report showed progress. A deal with Qatar Airways lifted optimism. A new settlement with the Department of Justice is in the works. 10 stocks we like better than Boeing › Boeing (NYSE: BA) stock is up around 14% so far this year, and analysts have been raising their price targets after the company reported a narrower-than-expected first-quarter loss in late April. While it's been a bumpy flight for Boeing investors in recent years, there are clear signs that the embattled aerospace titan is making real progress on its turnaround plan. Here are three reasons you should consider starting a position in Boeing -- or adding to your position -- right now. During the company's first-quarter earnings call on April 23, CEO Kelly Ortberg said that Boeing's "recovery plan is in full swing." Boeing's first-quarter results provided plenty of fuel for Ortberg's optimism. Boeing reported a net loss of $31 million, a drastic improvement over the $355 million loss in Q1 2024 (and a drop in the bucket compared to its $11.8 billion full-year loss from 2024). Boeing also delivered a rare earnings beat, with a core loss of $0.49 per share that topped analysts' estimates by $0.81. First-quarter revenue was up 18% to $19.5 billion. The big story behind the top-line growth was Boeing's continued progress on stabilizing its key commercial programs. Boeing delivered 130 commercial jets during the quarter -- compared to 83 in the year-ago quarter -- lifting commercial aircraft sales 75% higher. Notably, the company continued to ramp up production of the 737 MAX, the latest iteration of Boeing's best-selling jet. Ortberg emphasized that Boeing is making strides in its quality control, which has been at the heart of the company's manufacturing woes. On the all-important 737 MAX production line, Boeing has seen a roughly 50% reduction in "traveled work" -- work not done where originally planned -- and a 25% reduction in rework hours, according to Ortberg. In layman's terms, that means more work is getting done the right way -- the first time. "Even more importantly, almost every customer I talk with reports an improvement to the quality of the airplane," Ortberg said during the Q1 conference all. Just a few weeks after the Q1 positive earnings surprise, Boeing and Quatar Airways announced that the airline will buy up to 210 Boeing widebody jets in a deal that the White House valued at $96 billion. The size and scope of the deal are significant. Not only is it a vote of confidence from one of the world's most respected airlines, but it also underscores the robust global demand for Boeing's widebody jets -- particularly the fuel-efficient 787 Dreamliner. For investors, the record-breaking agreement signals that Boeing's commercial business -- which has been at the center of Boeing's struggles and recovery efforts -- is finally regaining altitude. However, the deal comes with an asterisk. As part of the agreement, Qatar Airways reportedly cancelled a 2022 order for 25 Boeing 737 MAX 10 jets. Given the fact that the FAA has yet to certify the MAX 10 variant for delivery, the cancellation isn't a big surprise. Still, it highlights the urgent need for Boeing to resolve its 737 MAX production issues and certification delays before it loses out on any additional orders. The legal fallout from the crashes of Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019 has cast a long shadow over Boeing's operations and stock performance. Boeing agreed to a $2.5 billion settlement with the Department of Justice in 2021. As part of the three-year "deferred prosecution agreement," Boeing admitted that two employees misled regulators about a key flight-control system, contributing to the crashes that killed 346 people. But things got more complicated after a door plug blew out of an Alaska Airlines 737 MAX in January 2024 -- just days before the DOJ settlement was set to expire. That prompted the DOJ to conclude that Boeing had violated the terms of the earlier deal. Prosecutors reopened the case, and it looked like Boeing might face criminal prosecution and potentially even a felony conviction. But a resolution appears to be on the horizon. On Friday, news outlets reported that the Justice Department had reached a preliminary agreement with Boeing, enabling the company to avoid prosecution for the fatal 737 MAX crashes. While the deal will cost Boeing more than $1.1 billion -- including a $444.5 million contribution to a crash victims' fund and a $445 million investment in compliance, safety, and quality programs -- the jet maker will avoid being classified as a felon, according to CNBC. The implications for investors are enormous. A felony conviction could have jeopardized Boeing's ability to win government contracts from the Department of Defense, NASA, and other agencies (a business segment that generated $6.3 billion for the company in Q1 2025). The nonprosecution settlement eliminates that risk, and it takes a criminal trial -- which was scheduled for next month -- off the table. If finalized, the DOJ deal should go a long way toward restoring investor confidence and removing a cloud that's been hovering over Boeing for years. Boeing isn't out of the woods just yet, though. Lingering quality control concerns, ongoing regulatory scrutiny, and President Donald Trump's on-again/off-again tariffs could make for a turbulent flight path, at least in the short term. Still, with an improving balance sheet, steadying production, and a $545 billion order book, Boeing looks better-positioned today than it has been in years. Even as the stock price has run up a bit lately, there's plenty of runway ahead for this aerospace giant. Before you buy stock in Boeing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Boeing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Josh Cable has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 Reasons Boeing Stock Is a Buy was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Boeing reaches deal to avoid criminal charges over deadly 737 Max crashes
The Justice Department is dropping its criminal case against Boeing. It's a major win for the embattled planemaker. The case stems from two Boeing 737 Max crashes that killed 346 people in 2018 and 2019. The Justice Department on Friday said it had reached a deal with Boeing that would allow the planemaker to avoid criminal charges stemming from two 737 Max crashes that killed 346 people and upended the planemaker's business for years. Boeing will instead invest more than $1 billion in strengthening its compliance, safety, and quality programs in exchange for the Justice Department dropping the case. The deal is not yet finalized and will be submitted to the court soon, the department said in a court filing. Crucially, the lack of being labeled as a felon could help it continue winning lucrative defense contracts without a waiver from the Pentagon. Boeing declined to comment. Boeing originally agreed to plead guilty to conspiracy to defraud the Federal Aviation Administration and pay a $243.6 million fine, but that deal was thrown out by the judge in December. A jury trial was scheduled to begin in June. The families of some victims have long opposed any outcome that did not result in a trial. "This isn't justice. It's a backroom deal dressed up as a legal proceeding, and it sends a dangerous message: in America, the rich and powerful can buy their way out of accountability," the victims said via a lawyer when reports first surfaced earlier in May that a deal was in the works. It's yet another piece of good news for the beleaguered planemaker following the 737 Max crashes, a midair door-plug blowout, and other quality control headaches that have plagued its production line in recent years. In 2025, the company won a lucrative defense contract for the F-47 fighter plane and has seen an influx of orders for its 787 Dreamliner and yet-to-be-certified 777X. Shares are up more than 17% year-to-date, outpacing the broader market. Read the original article on Business Insider
Business Insider
23-05-2025
- Business
- Business Insider
Boeing reaches deal to avoid criminal charges over deadly 737 Max crashes
The Justice Department on Friday said it had reached a deal with Boeing that would allow the planemaker to avoid criminal charges stemming from two 737 Max crashes that killed 346 people and upended the planemaker's business for years. Boeing will instead invest more than $1 billion in strengthening its compliance, safety, and quality programs in exchange for the Justice Department dropping the case. The deal is not yet finalized and will be submitted to the court soon, the department said in a court filing. Crucially, the lack of being labeled as a felon could help it continue winning lucrative defense contracts without a waiver from the Pentagon. Boeing did not immediately respond to a request for comment. The announcement appears to have little impact on the company's stock price Friday afternoon. Boeing originally agreed to plead guilty to conspiracy to defraud the Federal Aviation Administration and pay a $243.6 million fine, but that deal was thrown out by the judge in December. A jury trial was scheduled to begin in June. The families of some victims have long opposed any outcome that did not result in a trial. "This isn't justice. It's a backroom deal dressed up as a legal proceeding, and it sends a dangerous message: in America, the rich and powerful can buy their way out of accountability," the victims said via a lawyer when reports first surfaced earlier in May that a deal was in the works. It's yet another piece of good news for the beleaguered planemaker following the 737 Max crashes, a midair door-plug blowout, and other quality control headaches that have plagued its production line in recent years. In 2025, the company won a lucrative defense contract for the F-47 fighter plane and has seen an influx of orders for its 787 Dreamliner and yet-to-be-certified 777X.
American Military News
19-05-2025
- Business
- American Military News
US announces more than $243 billion in deals with Qatar
The White House said President Donald Trump had secured deals totaling more than $243.5 billion with Qatar, laying the groundwork for a bigger $1.2 trillion economic pledge with the tiny Gulf country. 'The landmark deals celebrated today will drive innovation and prosperity for generations, bolster American manufacturing and technological leadership, and put America on the path to a new Golden Age,' the White House said. The announcement came on the second leg of Trump's swing through the Middle East, a day after the president touted some $600 billion in investments by Saudi Arabia in U.S. manufacturing, products and services. Trump has focused much of his energy on the trip in securing investment dollars, while praising Gulf states for seeking a deeper partnership with the U.S. Trump's take so far has fallen short of his ambitions for an even bigger haul; the president had floated the possibility of securing $1 trillion in investment pledges from Saudi companies and on Tuesday said the two nations would work toward that goal. Earlier Wednesday, the White House announced that Qatar Airways had inked a $96 billion plan to acquire as many as 210 Boeing Co. 787 Dreamliner and 777X aircraft. The White House cast the buy as the largest-ever widebody order and the largest-ever for the 787s. A critical focus of the partnership with Qatar is defense. The U.S. and Qatari governments have signed off on a $1 billion agreement for Raytheon, a major American defense contractor, to provide counter-drone capabilities to Qatar. The agreement would make Qatar the first international customer for Raytheon's Fixed Site-Low, Slow, Small Unmanned Aerial System Integrated Defeat System, which is designed to counter unmanned aircraft. General Atomics also secured a nearly $2 billion agreement for Qatar to acquire MQ-9B drones, according to the White House. And the two countries signed a statement of intent to bolster security partnerships that outlines over $28 billion in potential investments. Despite its modest size, Qatar has taken on increasing importance for U.S. security as well as Trump's ambitions to broker a Mideast peace deal between Israel and Hamas. It's also grown in stature for Trump, key presidential allies to the president and his family business, the Trump Organization, which recently inked an agreement to develop a golf course, clubhouse and beachfront villas on its coast. Qatar is home to the Al Udeid Air Base, the largest U.S. military installation in the region. The sprawling complex serves as a logistics hub for the U.S. Central Command and is set to host American troops for at least another decade, under an agreement reached last year. In 2022, former President Joe Biden named Qatar a major non-NATO ally for the U.S. The White House also touted partnerships between McDermott International Ltd. and Qatar Energy worth $8.5 billion as well as 30 projects worth up to $97 billion for Parsons Corp. Other partnerships highlighted by the White House include ventures between Quantinuum and Al Rabban Capital, which would invest up to $1 billion in quantum technologies and workforce development in the US. Like the other Gulf states Trump is visiting, Qatar has sought to strengthen its ties with the U.S. — including through direct investment in the country. On Thursday, Trump is slated to visit Abu Dhabi. ___ © 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.
