Chicago’s Boeing Co posts first quarterly profit in almost 2 years; shares jump 5%

On Wednesday, American multinational low-cost aircraft carrier maker Boeing Co had reported quarterly profits for the first time in nearly two years

by Sourav D
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Chicago’s Boeing Co posts first quarterly profit in almost 2 years; shares jump 5%

On Wednesday, Boeing Co., the Chicago, Illinois-headquartered world’s largest low-cost aircraft carrier manufacturer which had lost the aviation industry crown to its European counterpart Airbus SE a couple of years earlier, had posted quarterly profits for the first time in roughly two years, as a sharp shoot-up in domestic traffics had revived Boeing’s best-selling 737 Max deliveries, sending its shares’ prices as much as 4.74 per cent higher to $232.81 apiece in late-afternoon US trading after rising nearly 6 per cent in pre-market trading.

In point of fact, Boeing Co.’s upbeat quarterly earnings in fiscal Q2 of 2021, had been almost entirely prodded by a strong upsurge in US domestic air travels, as the planemaker had yet to resolve a raft of blazing issues.

The Chicago-based world’s second-largest aviation industry giant had been struggling to recover billions of dollar what it had lost during the pandemic-led ban on air travels, while the low-cost carrier maker must move beyond a safety scandal linked to its best-selling 737 MAX while mending structural defects in its bigger and higher profit-margin 787 planes, suggested analysts.

Boeing co turns to profitability for first time in almost two years

According to Boeing Co.’s quarterly earnings’ report, the American multinational planemaker had notched an operational profit of $755 million during fiscal second quarter of 2021 that ended on June 30, compared to a loss of $3.32 billion at the same time a year earlier, handily beating an analysts’ estimate of a loss of $454.8 million, while revenues surged nearly 44 per cent to $17 billion, above an estimate of $16.54 billion, IBES data from Refinitiv had unveiled.

Meanwhile, speaking to the investors in a post-earnings conference call, Boeing Chief Executive David Calhoun said, “The U.S. domestic market is showing remarkable recovery…Hopefully bigger trade issues (Sino-US spat) don't get in the way…We anticipate a multi-year recovery,” however, had warned that international travels might take longer-than-expected to pick up amid a resurgence in pandemic cases.

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