Boeing Reports Smaller Loss in First Quarter, Faces Production Cutbacks
Boeing recently reported a smaller loss in the first quarter compared to a year ago, with revenue dropping 8% to $16.6 billion. However, the company warned of the need to cut back production due to quality and safety issues, particularly in the commercial airplanes unit.
CEO Dave Calhoun plans to leave his post by the end of the year as Boeing faces challenges with assembly line problems. The company will produce fewer 737 Max jets and limit production of the 787 Dreamliner.
Boeing has also compensated airline customers following the grounding of 737 Max 9 jets due to safety concerns. Multiple investigations into Boeing have raised concerns about the safety and quality of its aircraft.
Despite the smaller-than-forecast loss, Boeing’s shares were up more than 3% in pre-market trading. However, the company has faced financial and quality issues dating back at least five years, including fatal crashes tied to design flaws.
Boeing reported record orders in December, but has since faced setbacks, including an incident on an Alaska Air flight. The National Transportation Safety Board found that the jet involved in the incident was missing bolts needed to hold the door plug in place.
As Boeing navigates these challenges, the company continues to work towards improving safety and quality standards to regain the trust of customers and investors.
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