Boeing Posts Profit After Turbulent 2 Years

Boeing Co. on Wednesday posted its first quarterly profit in almost two years, as deliveries of its best-selling 737 MAX jets to airlines gained traction amid a sharp rebound in travel bookings following an increase in global COVID-19 vaccinations.

The 737 MAX is integral to Boeing's financial recovery, as the U.S. planemaker scrambles to recoup billions of dollars in lost sales from the pandemic, push past the safety scandal caused by two fatal 737 MAX crashes, and deal with structural defects of its bigger, more profitable 787 planes, Ankit Ajmera and Eric Johnson reported for Reuters.

Boeing shares were up 5% at $233 in midday trading following the results, which were also fueled by higher defense and services sales.

Chief Executive Officer David Calhoun said in a message to employees the company now plans to keep staffing levels stable at around 140,000 employees, after previously targeting a reduction to 130,000 by the end of 2021.

Calhoun told investors on the company's earnings conference call that "the US domestic market is showing remarkable recovery." But he cautioned Boeing's recovery faces threats such as a longer-off return of international travel, COVID-19 variants and a labor shortage in its sprawling supply chain.

"We anticipate a multi-year recovery," Calhoun added. Boeing's 737 MAX remains grounded in China, where trade tensions between Washington and Beijing have stunted sales, and it faces tougher regulatory scrutiny and weak demand for its delayed 777X mini-jumbo. The company is also working through costly repairs and forensic inspections to fix production-related defects on its 787 program.

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