Key Points
- Boeing is stabilizing under its new CEO, Kelly Ortberg, after years of crises.
- The company’s stock is up over 30%, production and deliveries are increasing, and financial losses are shrinking.
- Customers, including Ryanair’s CEO, who once harshly criticized the company, are now praising its improvements in quality.
- The turnaround follows major crises, including two fatal 737 Max crashes and the January 2024 door-plug incident.
After years of spiraling from one crisis to another, Boeing is finally finding some stability under the leadership of its new CEO, Kelly Ortberg. An experienced aerospace executive pulled from retirement to fix the company, and Ortberg is set to outline significant progress this week. Investors are taking notice, with Boeing’s stock up more than 30% this year.
Wall Street expects the company to halve its quarterly losses. Production and deliveries have also hit their highest levels in 18 months. This represents a significant shift for a company that had consistently missed targets and frustrated customers, allowing its rival, Airbus, to pull ahead.
The culture at Boeing also appears to be changing for the better. Even longtime critics are starting to change their tune. Ryanair’s CEO, who once said Boeing’s management needed a “boot up the arse,” recently praised Ortberg and his team, stating that the quality of the planes has “dramatically improved.” United Airlines’ CEO has also noted that deliveries are more predictable.
However, Boeing is not out of the woods yet. The turnaround effort began after a series of disasters, including two fatal 737 Max crashes and the January 2024 incident in which a door plug blew out of a plane mid-flight.
The company still faces major hurdles. The FAA has capped its 737 Max production, and Boeing needs approval to increase its output. Its defense unit is also facing a potential strike from factory workers. Some industry experts suggest that the company should consider designing a completely new jet to replace the aging 737.
