Boeing CEO Ortberg Expresses Optimism Despite Past Challenges
CEO Kelly Ortberg has led Boeing through a tumultuous period, reporting an $11.8 billion loss last year. However, in recent interviews and an earnings call, Ortberg suggests that the worst may be behind the aviation giant.
Production Improvements
The company's commercial airplane division is addressing lingering production issues and plans to increase output of the popular 737 MAX to 38 per month later this year, with further expansions pending regulatory approvals. Industry analysts are cautiously optimistic, citing Boeing's slower and more deliberate approach to problem-solving.
Stock Performance and Analyst Sentiments
Boeing's stock has risen 2.8% since Ortberg took office in August 2023. While the positive earnings results boosted the stock, some analysts remain skeptical due to past oversights and bullish predictions that failed to materialize.
Supplier Concerns
Suppliers, having previously suffered from unfulfilled production increases, are wary of investing heavily and becoming vulnerable. Boeing needs to instill confidence in suppliers to secure their commitment and ramp up production.
Management-Employee Relations
Analysts have highlighted strained management-employee relations, including a lengthy strike and allegations of union concerns. However, the path towards increased jetliner production is promising, as the market remains eager for new planes.
Outlook
Despite past challenges, Ortberg remains optimistic about Boeing's future. The company is implementing production improvements, addressing supplier concerns, and navigating management-employee relations. As production increases and confidence is restored, Boeing aims to return to a positive strategic direction and meet market demand.