Boeing Co (NYSE:BA) has reported a net loss for the second straight quarter and unveiled plans to cut its workforce by about 10%, further reduce 787 Dreamliner production and try to boost liquidity as the coronavirus pandemic impacts business.
However, the aircraft maker said it was confident of getting sufficient liquidity to fund its operations, sending its shares higher. In morning trade in New York, Boeing shares were up 5% to $138.10.
The group said the majority of job cuts will be at its commercial aircraft division, where the firm already has a production freeze after the year-long grounding of the 737 MAX jetliner following two fatal crashes.
It added that 737 MAX production will resume at low rates in 2020 as timing and conditions of return to service are better understood and gradually increase to 31 per month during 2021, with further gradual increases to correspond with market demand. The group said its assumed timing of 737 MAX regulatory approvals will enable deliveries to resume during the third quarter.
Boeing said it plans to cut production of the bigger 787 jet to 7 units per month by 2022. Earlier this year, the company revised the production target down to 10 aircraft per month in early 2021, having said in October last year that the 787 production rate would reduce to12 per month in late 2020 from 14 It will also reduce the combined production rate for 777/777X jets to 3 per month in 2021 from 5.
The company’s adjusted loss for the first quarter of 2020 was $1.70 billion, or $1.70 per share, compared with a profit of $1.99 billion, or $3.16 per share, a year earlier.
Also on Wednesday, the US firm's European rival Airbus posted a 49% drop in its first-quarter core profit and also announced plans to save cash.