Boeing has further reduced its production guidance for the second half of the year, citing the impact of the COVID-19 pandemic.
In its interim results for 2020, the company said that it would reduce the production of its larger airliners such as the 777X and 787 to two units and six units per month, down from three and 10, respectively, manufactured in Q1 2020.
The 737Max program remains grounded with pending approval from the Federal Aviation Administration (FAA). However, the company said that it will retain its guidance for the program with gradual increases to 31 units per month toward the end of the year or the first quarter of 2021. The flight ban has cost Boeing $797mn due to abnormal production costs.
The company delivered merely 70 aircraft in H1 2020, down 71pc from 239 units in the same period in 2019. Total sales accounted for $23.3bn of Boeing’s total revenue of $28.2bn.
The company is positive about its defense and space programs, which posted a 4pc growth in H1 2020 at $12.6bn.
Boeing posted a net loss of $4.9bn in H1 2020 which was reduced to $3.03bn in light of the $1.9bn stimulus package provided by the government. This compares to a net loss of $793mn posted during the same period last year. The company’s net loss during the quarter stood at $2.39bn down from $2.94bn in Q2 2019.