After a difficult few years marred by aircraft groundings, delays, and the pandemic, Boeing has finally taken a significant step in its recovery. In its busiest year since 2018, the US-based aircraft manufacturer posted a positive operating cash flow of $3.1 billion during Q4, the second consecutive month that it has been positive. However, overshadowing this achievement was a loss of $5 billion across the whole of 2022. The final quarter of the year delivered a net loss of $663 million, despite revenues climbing 35% from $14.7 billion in 2021 to $19.9 billion in 2022. Across the whole year, revenue had increased by 7% to a total of $66.6 billion. Dave Calhoun, President and CEO at Boeing, noted that,

"We had a solid fourth quarter, and 2022 proved to be an important year in our recovery. Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond."

“We are investing in our business, innovating and prioritizing safety, quality and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength."

United Airlines Boeing 777-200 crossing a runway threshold.
Photo: Vincenzo Pace | Simple Flying

Commercial flies high

Boeing Commercial Airplanes was a highlight of the results, with 480 aircraft delivered in 2022, a 41% boost from the year before. Revenue increased to $9.2 billion on the back of higher aircraft delivery rates, although some of this achievement was overshadowed by what Boeing referred to as 'abnormal production costs'. In an interview with CNBC, Cahoun noted that this was related to the reworking of both the MAX and the Dreamliner.Supply chain problems continue to plague the ramp-up of 787 Dreamliner deliveries, plus the company had to pass on an unspecified amount of compensation to customers who had their deliveries delayed. For now, Boeing is curbing its projections on the uptick in Dreamliner production but still hopes to get to five per month later this year.

All Nippon Airways Boeing 787-9 Dreamliner parked at the gate
Photo: Vincenzo Pace | Simple Flying

Boeing confirmed plans to deliver as many as 450 737 MAX aircraft in the coming year, alongside a projected 70 - 80 widebody aircraft. It hopes to generate up to $5 billion in free cash flow by the end of 2023. The 737 program has already begun ramping up on the production side, and currently sits at around 31 per month. Boeing expects this to increase to around 50 per month by 2025-2026.

No China yet

Figures still remain below its initially optimistic predictions, as reported by Reuters, shares in the aviation giant tumbled 3% following the publication of its results. Despite lowered expectations, the company has seen a 70% rise in shares since September – an optimistic overall outlook as the company begins its climb back.

China Southern Airlines Boeing 737 MAX 8
Photo: Suparat Chairatprasert | Shutterstock

Over 4,500 jets are currently sitting in Boeing’s backlog, valued at $404 billion. Unfortunately, Boeing's production and delivery targets for this year don't include any of the 138 737 MAX destined for China that the planemaker currently has in storage. Despite positive moves from the Chinese over the past year, including China Southern operating its first 737 MAX flight this month, the country is still yet to fully approve the aircraft type following its grounding. Nevertheless, with China opening up to the work again, perhaps Chinese carriers will begin to pile on the pressure to get these useful narrowbodies back into service sooner rather than later.Sources: Reuters, CNBC

  • 787-8 Dreamliner
    Boeing
    Stock Code:
    BA
    Date Founded:
    1916-07-15
    CEO:
    Dave Calhoun
    Headquarters Location:
    Chicago, USA
    Key Product Lines:
    Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787
    Business Type:
    Planemaker