Boeing 777X entry into service slips to 2021, first flight still on track for early 2020
Today, Boeing has reported its 3rd quarter results and gave some updates on 737 MAX’s progress towards returning to service, 787 Dreamliner production and 777X entry into service.
Boeing reported 3rd quarter revenue of $20.0 billion, GAAP earnings per share of $2.05 and core earnings per share (non-GAAP) of $1.45, reflecting lower 737 deliveries partially offset by higher defense and services volume. Boeing recorded operating cash flow of ($2.4) billion and paid $1.2 billion of dividends.
Boeing has developed software and training updates for the 737 MAX and continues to work with the FAA and global civil aviation authorities to complete remaining steps toward certification and readiness for return to service. These regulatory authorities will determine the timing and conditions of return to service in each relevant jurisdiction. For purposes of the third-quarter results, the company has assumed that regulatory approval of the 737 MAX return to service begins in the fourth quarter of 2019 and that it will gradually increase the 737 production rate from 42 per month to 57 per month by late 2020.
The 777X program is progressing through pre-flight testing and remains on track for first flight in early 2020. The company is now targeting early 2021 for first delivery of the 777X.
Commercial Airplanes delivered 62 airplanes during the quarter. Given the current global trade environment, the 787 production rate will be reduced to 12 airplanes per month (from 14) for approximately two years beginning in late 2020. Commercial Airplanes booked net orders worth $5 billion during the quarter, including orders for twenty 787 airplanes for Korean Air, eight 787 airplanes for Air New Zealand, and six 777 freighters for China Airlines. Commercial Airplanes backlog included nearly 5,500 airplanes valued at $387 billion. Full results, here.
BOEING confirms #777X entry into service in early 2021 (first flight still on track for early 2020), cuts 787…