Key facts
- Airlines are showing renewed trust in Boeing, as evidenced by its performance at the Farnborough Airshow.
- Boeing secured 173 aircraft orders, exceeding Airbus's 154 orders, marking its first order win at a major airshow in four years.
- CEO Kelly Ortberg's visible presence and hands-on approach are seen as positive signs for the company's recovery.
- Despite a recent quarterly loss, Boeing is showing signs of recovery with increasing revenue and deliveries.
- The order book at the show was notable for the absence of large orders from major airlines, with lessors and startups placing significant deals.
Airlines are demonstrating renewed confidence in Boeing, with the planemaker securing more orders than its rival Airbus at the recent Farnborough Airshow. This marks a significant development for Boeing, which has been working to recover its reputation following years of safety concerns, quality issues, and delivery delays.
Boeing's CEO, Kelly Ortberg, was notably visible at the show, a move seen by analysts as a positive sign of leadership and commitment to addressing the company's challenges. Augusto Viansson Ponte, a director at Alton Aviation Consultancy, commented that the volume of Boeing orders indicated faith from operators in the company's ability to resolve its issues.
At the airshow, Boeing announced deals for 173 aircraft, surpassing Airbus's 154. This is the first time Boeing has led an order tally at a major airshow in four years, a period dominated by Airbus due to Boeing's struggles with the 737 Max crisis and production problems with other models.
Despite these positive signs, Boeing is still facing financial headwinds, reporting a $428 million loss in the second quarter, partly due to a charge related to the Air Force One replacement program. However, the company's stock has seen a modest increase, and analysts note steady progress in deliveries and production. Revenue is rising, and commercial deliveries are increasing.
The order book at this year's Farnborough Airshow was characterized by a lack of large orders from major airlines. Instead, the largest order came from lessor SMBC Aviation, which ordered 100 aircraft from both Boeing and Airbus. Saudi startup Riyadh Air also announced deals for Boeing 787s and Airbus A350s, though it had already placed substantial orders in previous years. The ongoing Iran war may also be making Middle Eastern airlines hesitant to commit to new aircraft purchases at this time.
Boeing's comeback is underscored by its efforts to overhaul production processes and quality control following incidents like the Alaska Airlines 737 Max door plug blowout in early 2024. The company is still navigating supply-chain constraints and substantial backlogs.