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Boeing reports losses again in the third quarter

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Boeing once again suffered a net loss in the third quarter despite the strong performance of its 737 MAX aircraft. The bottom line was impacted by problems with its 787 Dreamliner long-haul jet and its Starliner space capsule.

boeing starliner in trouble

The group posted a net loss of $132 million between July and September. Although sales for the period grew by 8%, they fell short of analysts’ expectations.

“Demand for commercial airplanes continues to gain momentum as large vaccination campaigns and border restrictions begin to ease,” CEO David Calhoun said in a statement.

During the coming months, Boeing’s business will depend on “supply chain capacity and global trade,” he said.

Boeing continues to make progress on deliveries of the 737 MAX. The aircraft was grounded for 20 months following two fatal accidents before being allowed to fly once again around the world starting in late 2020.

More than 200 of the 737 MAX aircraft have returned to operation. Since then, 195 of these aircraft have been delivered from the factory.

Deliveries halted while inspections and modifications took place. Furthermore, production decreased to about two aircraft per month from five per month.

Starliner in trouble.

As a result of the slowdown and additional work required, Boeing estimates an additional “abnormal cost” of about 1 billion dollars.

In the third quarter, the group set aside a provision of $183 million for this purpose.

Furthermore, as a result of the setbacks of its space capsule Starliner, Boeing made a provision of 185 million dollars.

During the beginning of August, NASA had to cancel a test mission of the capsule planned to transport astronauts to the International Space Station (ISS). The capsule returned to the factory for repairs.

Boeing plans to retry the test flight in the “first half of 2022”.

The manufacturer has been able to capitalize on its customer services business, whose revenues have increased by 14% due to a recovery in demand for maintenance for commercial aircraft.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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