Latest news with #aircraft
Yahoo
15 hours ago
- Business
- Yahoo
Boeing's 2Q loss narrows and revenue rises, topping Wall Street's expectations
Boeing's second-quarter loss narrowed and revenue improved as the aircraft manufacturer delivered more commercial planes in the period. Boeing Co. lost $611 million, or 92 cents per share, for the three months ended June 30. A year earlier it lost $1.44 billion, or $2.33 per share. Adjusting for one-time gains, Boeing lost $1.24 per share. This was better than the loss of $1.54 per share that analysts surveyed by Zacks Investment Research expected. Shares rose more than 2% before the market open on Tuesday. Revenue climbed to $22.75 billion from $16.87 billion, mostly due to 150 commercial deliveries compared with 92 deliveries in the prior-year period. The performance topped Wall Street's estimate of $21.86 billion. Boeing has been dealing with a variety of issues over the past few years. On Sunday Boeing said that it expects more than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets to strike after they rejected a proposed contract that included a 20% wage increase over four years. The International Machinists and Aerospace Workers union said the vote by District 837 members was overwhelmingly against the proposed contract. The existing contract was to expire at 11:59 p.m. Central time Sunday, but the union said that a 'cooling off' period would keep a strike from beginning for another week, until Aug. 4. Last fall, Boeing offered a general wage increase of 38% over four years to end a 53-day strike by 33,000 aircraft workers producing passenger aircraft. In June the National Transportation Safety Board said that its 17-month long investigation found that lapses in Boeing's manufacturing and safety oversight, combined with ineffective inspections and audits by the Federal Aviation Administration, led to a door plug panel flying off Alaska Airlines flight 1282, which was a Boeing 737 Max 9 aircraft, last year. Boeing said in a statement at the time that it will review the NTSB report and will continue working on strengthening safety and quality across its operations. The Max version of Boeing's bestselling 737 airplane has been the source of persistent troubles for the company since two of the jets crashed, one in Indonesia in 2018 and another in Ethiopia in 2019, killing a combined 346 people. In May the Justice Department reached a deal allowing Boeing to avoid criminal prosecution for allegedly misleading U.S. regulators about the Max before the two crashes. Boeing was also in the news last month when a 787 flown by Air India crashed shortly after takeoff and killed at least 270 people. Investigators have not determined what caused that crash, but so far they have not found any flaws with the model, which has a strong safety record. 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
Khaleej Times
15 hours ago
- Business
- Khaleej Times
How US-EU aerospace rivals united to preserve tariff-free aircraft trade
A provisional deal between the United States and European Union to exempt aircraft from tariffs avoids a potential threat to jet production and deliveries in both regions and caps months of uncharacteristic unity among plane-making rivals. The framework deal, announced on Sunday, will see the U.S. impose a 15% import tariff on most EU goods but offer protection for industries including aerospace, with zero-for-zero tariffs on aircraft and parts, European officials said. Following intense lobbying, it spares an industry that is often a lightning rod for trade tensions, with the World Trade Organization tested to its limits by a 17-year dispute over Airbus and Boeing subsidies before a truce in 2021. Aircraft, engines, spare parts, and components from landing gear to seats had faced potentially higher costs and some jet deliveries looked set to be disrupted by the threatened U.S. tariffs that would have compounded supply chain problems. Still, questions remain over detailed implementation of the deal and whether it will extend to other components like space. "We are just waiting until we see these things written down," one European industry official told Reuters. Airbus said it had taken note of the deal. "A stable and predictable trade environment is essential for our highly integrated global aerospace industry," it said. Boeing had no immediate comment. UNITED CAMPAIGN Sunday's agreement follows a discreet and unusually united campaign to revert to a landmark 1979 agreement between over 30 nations that mandated duty-free trading in civil aircraft. An industry that only a few years earlier had torn itself apart over trade disputes on subsidies involving Airbus and Boeing found itself in lockstep on both sides of the Atlantic. But two terms from the industry's previous trade handbook were quietly dropped, sources said: multilateral and WTO. The 1979 Agreement on Trade in Civil Aircraft that eliminated tariffs on aircraft and parts is one of a handful of industry-specific deals that survived from an earlier round of trade talks when the World Trade Organization opened in 1995. U.S. President Donald Trump, who once called the WTO "the single worst trade deal ever made," appears to prefer bilateral deals over broad alliances from trade to security, and "multilateralism" is one of the biggest bugbears of his America First philosophy. Lobbying was intense from all quarters but industry sources highlighted a discreet but influential role played by GE Aerospace CEO Larry Culp. Culp told Reuters in April he had advocated re-establishing the tariff-free regime for the aerospace industry during a meeting with Trump at the White House. He said the position was "understood" by the administration, stressing that the zero-duty regime had helped the U.S. aerospace industry reach a $75 billion annual trade surplus. Industry officials also argued aerospace was interconnected and that U.S. tariffs would not favour Boeing at the expense of its European rival Airbus, but merely hurt everyone. GE did not have any immediate comment on the new deal. In May, Trump reached a trade accord with Britain that tested the ground by restoring duty-free trading in jet engines. 'TEMPLATE' FOR TALKS After the US-UK trade deal, aerospace industry officials urged the White House to use it as a template for future trade negotiations. GE's Culp and Delta Air Lines CEO Ed Bastian mentioned the deal as a template to follow. On Monday, Delta hailed the EU trade deal for preserving "a zero-tariff environment" on aircraft and component parts. The U.S. airline said the trade agreement would "help protect and continue to grow the role of air travel as a driver of U.S. economic growth, innovation, and high-quality jobs." The agreement stops short of restoring the whole 1979 agreement and focuses on the largest aerospace markets. Boeing typically delivers 17% of its jets to Europe while Airbus delivers some 12% to the United States, some of which are assembled locally, according to Boeing and Cirium data. But Europe and the U.S. are each other's largest market for aircraft components, according to French industry lobby Gifas. Although the agreement relieves one significant source of pressure, there are concerns that Boeing, Airbus and their suppliers could still be caught up indirectly in trade tensions between Washington and China, as they seek to do business there. Aerospace companies are also awaiting findings from an ongoing U.S. trade investigation into aerospace. In May, the U.S. Commerce Department launched a "Section 232" national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for tariffs or quotas. U.S. airlines who met the department say much of the focus has been on China and concerns over potential further disruption to key supplies, on top of rare earths and magnets. It could also be used to impose new tariffs on Brazil, home to Embraer, for whose regional jets there are few alternatives. U.S. carriers currently face 50% tariffs on imports of the jets, which Embraer says could add $9 million per plane. Alaska Air, which is scheduled to receive three jets from the Brazilian planemaker early next year, said last week it could even consider deferring the aircraft deliveries.
Bloomberg
15 hours ago
- Business
- Bloomberg
Boeing Stems Cash Outflow as Aircraft Deliveries Pick Up Pace
Boeing Co. managed to slow a cash outflow in the second quarter, indicating that a turnaround initiated by Chief Executive Officer Kelly Ortberg a year ago is paying off as the company delivers more aircraft. The planemaker consumed just $200 million in the three months, far less than the $1.8 billion outflow analysts had expected. The company also reported a smaller-than-expected loss for the quarter as well as revenue that beat estimates.
Associated Press
15 hours ago
- Business
- Associated Press
Boeing's 2Q loss narrows and revenue rises, topping Wall Street's expectations
Boeing's second-quarter loss narrowed and revenue improved as the aircraft manufacturer delivered more commercial planes in the period. Boeing Co. lost $611 million, or 92 cents per share, for the three months ended June 30. A year earlier it lost $1.44 billion, or $2.33 per share. Adjusting for one-time gains, Boeing lost $1.24 per share. This was better than the loss of $1.54 per share that analysts surveyed by Zacks Investment Research expected. Shares rose more than 2% before the market open on Tuesday. Revenue climbed to $22.75 billion from $16.87 billion, mostly due to 150 commercial deliveries compared with 92 deliveries in the prior-year period. The performance topped Wall Street's estimate of $21.86 billion. Boeing has been dealing with a variety of issues over the past few years. On Sunday Boeing said that it expects more than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets to strike after they rejected a proposed contract that included a 20% wage increase over four years. The International Machinists and Aerospace Workers union said the vote by District 837 members was overwhelmingly against the proposed contract. The existing contract was to expire at 11:59 p.m. Central time Sunday, but the union said that a 'cooling off' period would keep a strike from beginning for another week, until Aug. 4. Last fall, Boeing offered a general wage increase of 38% over four years to end a 53-day strike by 33,000 aircraft workers producing passenger aircraft. In June the National Transportation Safety Board said that its 17-month long investigation found that lapses in Boeing's manufacturing and safety oversight, combined with ineffective inspections and audits by the Federal Aviation Administration, led to a door plug panel flying off Alaska Airlines flight 1282, which was a Boeing 737 Max 9 aircraft, last year. Boeing said in a statement at the time that it will review the NTSB report and will continue working on strengthening safety and quality across its operations. The Max version of Boeing's bestselling 737 airplane has been the source of persistent troubles for the company since two of the jets crashed, one in Indonesia in 2018 and another in Ethiopia in 2019, killing a combined 346 people. In May the Justice Department reached a deal allowing Boeing to avoid criminal prosecution for allegedly misleading U.S. regulators about the Max before the two crashes. Boeing was also in the news last month when a 787 flown by Air India crashed shortly after takeoff and killed at least 270 people. Investigators have not determined what caused that crash, but so far they have not found any flaws with the model, which has a strong safety record.
Yahoo
16 hours ago
- Yahoo
Man in court over 'disturbance' on easyJet flight from Luton to Glasgow
A man has appeared in court over an alleged disturbance on board an easyJet flight from London Luton to Glasgow Airport. Abhay Nayak, 41, was arrested after the plane landed in the Scottish city at about 8.20am on Sunday. Nayak, of Luton, appeared at Paisley Sheriff Court charged with assault and endangering the safety of an aircraft. He did not enter pleas to the two charges when he appeared before the court on Monday. Read more from Sky News: Counter-terror police had initially assessed video footage of the alleged incident, however Nayak is not facing terrorism charges. He was remanded in custody and is due back in court within the next week.
