(Reuters) -Boeing reported a smaller-than-expected quarterly loss on Wednesday, as the U.S. planemaker produced and delivered more jets, after a quality crisis and crippling strike shuttered production of most of its aircraft in late 2024.
Boeing has been delivering more planes and wants to boost output of its strong-selling 737 MAX jets to 38 a month in 2025, after production slumped last year due to a series of crises and a strike by about 30,000 U.S. West coast factory workers.
Shares of the Dow component rose 4% in premarket trading, as the company said 737 production gradually increased in the quarter and it is still expected to reach 38 units per month by the end of the year.
But the planemaker faces pressures from supply-chain snags that have delayed production and dented its ability to cater to a booming aerospace market. It reported an $11.8-billion loss for 2024 due to problems at its major units.
Boeing is also dealing with the fallout of a U.S.-China trade war that led to the return of two of its planes destined for a Chinese carrier.
The planemaker is working to chart a recovery path under new CEO Kelly Ortberg, who is taking steps to streamline operations and strengthen its balance sheet.
On Tuesday, Boeing announced the sale of portions of its Digital Aviation Solutions business, including navigation unit Jeppesen, for $10.55 billion, as part of a plan by Ortberg to reduce debt by selling off non-core assets.
In a letter to employees on Wednesday, Ortberg referred to 2025 as Boeing’s “turnaround year”, citing higher first-quarter deliveries and product improvements.
“We’re building higher quality airplanes and delivering them with more predictability,” he said in the letter.
Free cash flow usage, a metric closely watched by investors, during the quarter improved to negative $2.3 billion, compared with negative $3.9 billion a year ago.
Boeing CFO had said in March that the cash flow could improve in the first quarter by “hundreds of millions” of dollars.
The planemaker reported an adjusted loss of 49 cents per share during the first quarter, compared with analysts’ average expectations of $1.29, according to data compiled by LSEG.
Its revenue increased 18% to $19.5 billion in the quarter through March, marginally above Wall Street expectations of $19.45 billion.
(Reporting By Allison Lampert in Montreal and Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)
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