Boeing is coming back!
That is the view of the world’s leading aerospace analyst New York-based Bernstein Research after Boeing posted its full-year results for 2021.
Boeing’s revenue for 2021 was US$62.3 billion up 7 percent on 2020 and its loss reduced from US$11.94b to US$4.29b.
This year Bernstein said Boeing’s revenue will leap 34 percent to $US83b and it will have a net income of US$3.66b.
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In its analysis of Boeing’s Q4 and full-year results for 2021, it maintains a outperform ratings and said “our view [is] that the company is on the path back.”
The path back has been the worst in Boeing’s storied history after two tragic 737 MAX crashes in 2018 and 2019 that claimed 346 lives, 787 production problems, and lengthy 777X certification issues due to greater scrutiny from the US regulator the Federal Aviation Authority.
And late last year the company lost two key sales battles – Qantas and KLM Royal Dutch Airlines – to Airbus.
Bernstein said the 737MAX ramp is starting, and it believes Boeing can deliver 500 of the type this year as it works through the huge backlog of orders and stored inventory.
It adds of those 500 deliveries roughly half will come from stored aircraft (335 currently stored).
Production of the 737MAX has reached 26 a month and will move up to 31 a month soon with Boeing management indicating 42 a month by year-end.
Compensating airlines for the two-year grounding of the 737 MAX is almost complete with Boeing paying out “all but US$2.9bn of its original $9.8bn for customer compensation.
“Of the remaining amount, only $700m is still to be negotiated, and “abnormal production” costs from last year have now all been absorbed as rates are going up,” Bernstein said.
It also said that the 787s parts and production issues that brought deliveries to a halt last year are at a point where “no further technical surprises are unlikely.”
Bernstein expects deliveries of the very popular 787 will resume in the second quarter of this year and Boeing has over 100 to be delivered after re-work, which is almost complete.
However, during the final quarter of 2021, Boeing took a US$3.5b charge tied to compensation for its 787 customers.
Bernstein said that it expects “the appetite for new aircraft to grow rapidly as we head toward the summer 2022 travel season at the same time many airlines see pressure related to carbon emissions on older aircraft.”
This week David Calhoun (below), Boeing president, and chief executive said “2021 was a rebuilding year for us as we overcame hurdles and reached key milestones across our commercial, defense, and services portfolios.
“We increased 737 MAX production and deliveries, and safely returned the 737 MAX to service in nearly all global markets.
“As the commercial market recovery gained traction, we also generated robust commercial orders, including record freighter sales. Demonstrating progress in our overall recovery, we also returned to generating positive cash flow in the fourth quarter.”
“Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future,” Mr. Calhoun said.
