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Boeing lost $2.4 billion in three months and to end 747 production and warns of job cuts

CHICAGO, July 29, 2020 /PRNewswire/ — 

  • Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
  • Revenue of $11.8 billion, GAAP loss per share of ($4.20) and core (non-GAAP)* loss per share of ($4.79)
  • Operating cash flow of ($5.3) billion; cash and marketable securities of $32.4 billion
  • Total backlog of $409 billion, including more than 4,500 commercial airplanes

The Boeing Company [NYSE: BA] reported second-quarter revenue of $11.8 billion, GAAP loss per share of ($4.20) and core loss per share (non-GAAP)* of ($4.79), primarily reflecting the impacts of COVID-19 and the 737 MAX grounding (Table 1). Boeing recorded operating cash flow of ($5.3) billion. 

“We remained focused on the health of our employees and communities while proactively taking action to navigate the unprecedented commercial market impacts from the COVID-19 pandemic,” said Boeing President and Chief Executive Officer Dave Calhoun. “We’re working closely with our customers, suppliers and global partners to manage the challenges to our industry, bridge to recovery and rebuild to be stronger on the other side.” 

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In the second quarter, Boeing restarted production operations across key sites following temporary pauses to protect its workforce and introduce rigorous new health and safety procedures. Despite the challenges, Boeing continued to deliver across key commercial, defense, space and services programs. The company also resumed early stages of production on the 737 program with a focus on safety, quality and operational excellence. Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.

To align to the sharp reduction in commercial market demand in light of COVID-19, the company is taking several actions including further adjusting commercial airplane production rates and reducing employment levels.

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“The diversity of our balanced portfolio and our government services, defense and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities,” Calhoun said. “We are taking the right action to ensure we’re well positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing. Air travel has always proven to be resilient – and so has Boeing.”

Operating cash flow was ($5.3) billion in the quarter, primarily reflecting lower commercial deliveries and services volume due to COVID-19 and the 737 MAX grounding, as well as timing of receipts and expenditures

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Cash and investments in marketable securities increased to $32.4 billion, compared to $15.5 billion at the beginning of the quarter, driven by the issuance of new debt (Table 3). Debt was $61.4 billion, up from $38.9 billion at the beginning of the quarter due to the issuance of new debt, partially offset by repayment of maturing debt.

Total company backlog at quarter-end was $409 billion.

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Commercial Airplanes second-quarter revenue and operating margin decreased reflecting lower delivery volume, partially offset by a lower 737 MAX customer consideration charge of $551 million in the quarter compared to a $5.6 billion charge in the same period last year. Second-quarter operating margin was also negatively impacted by $712 million of abnormal production costs related to the 737 program, $468 million of severance expense and $133 million of abnormal production costs from the temporary suspension of operations in response to COVID-19.

The 737 program resumed early stages of production in May and expects to continue to produce at low rates for the remainder of 2020. The COVID-19 pandemic has significantly impacted air travel and reduced near-term demand, resulting in lower production and delivery rate assumptions. Commercial Airplanes expects to gradually increase the 737 production rate to 31 per month by the beginning of 2022, with further gradual increases to correspond with market demand. Estimated potential concessions and other considerations to customers related to the 737 MAX grounding increased by $551 million in the quarter. There was no material change to estimated abnormal production costs. 

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Commercial Airplanes has further updated its production rate assumptions this quarter to reflect impacts of COVID-19 on its demand outlook, and will continue to assess them on an ongoing basis. The 787 production rate will be reduced to 6 per month in 2021. The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. At this time, production rate assumptions have not changed on the 767 and 747 programs.

Commercial Airplanes delivered 20 airplanes during the quarter, and backlog included over 4,500 airplanes valued at $326 billion.

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Airlines

Embraer gets new order from Porter Airlines for 25 jets

Embraer gets new order from Porter Airlines for 25 jets

Porter Airlines has added to its 50 existing firm orders with the exercise of purchase rights to place a firm order for 25 Embraer E195-E2 passenger jets.

With the new aircraft, Porter will be able to reach more locations across Porter and continue its highly regarded service. With 25 purchase rights left, Porter’s orders with Embraer now stand at 75 firm, valued at US$2.1 billion at list price. This deal will be added to the Q4 backlog.

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The E195-E2’s North American launch customer, Porter, has already accepted delivery of 24 of the aircraft and has just revealed plans to fly to new locations in Mexico and the Caribbean in addition to Las Vegas, Miami, San Francisco, and Los Angeles. At the moment, the planes are being used out of Eastern Canada, primarily targeting Ottawa and Toronto Pearson International Airport.

The E195-E2 is also bringing new services to Halifax and Montreal. Porter has decided to set up the 146-seat aircraft in a cosy all-economy configuration with 132 seats, offering 36, 34, and 30-inch seat pitches to their guests.

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Etihad to fly A380 superjumbo on Abu Dhabi-New York route

Etihad to fly A380 superjumbo on Abu Dhabi-New York route

Etihad Airways is happy to announce that on April 22, 2024, it will begin operating double-decker flights on the A380 to New York JFK.

Etihad’s ability to connect to the larger GCC and Indian subcontinent, as well as the US market, has been greatly enhanced with the launch of the A380. It will also bring in more tourists who want to take in the sights of the energetic city of Abu Dhabi.

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On one of the two daily flights from Etihad to New York, the A380 will be in service. A 787-9 aircraft with First, Business, and Economy classes will fly the other daily route. Now that Etihad has brought its superjumbo back to the skies, the US route is the second destination—after London—to experience the amazing A380.

The cabin includes 337 Economy Smart seats with large pillows for maximum comfort and Etihad’s signature fixed-wing headrests, as well as 68 extra legroom seats with an extra 4 inches of space.

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The Business Studios, which offer 70 private spaces on the upper deck, offer a private sanctuary that relieves stress during travel. The Lobby, a serviced lounge and bar area situated between the First and Business cabins, is also located on the upper deck.

Currently, etihad.com makes the dream of seeing The Residence just a click away. * Guests can upgrade from a First-class ticket for an absolutely unforgettable journey, with special offer prices starting at 10,999 AED ($2,990).

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  • Special deal: Upgrades are available for purchase between November 29 and December 12, 2023, for 10,999 AED for a single person or 14,999 AED for two, one-way. Travelable starting on April 22, 2024 (except June 14–24, 2024).

The standard one-way residence upgrade fare from Abu Dhabi to New York is 16,600 AED per person.

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Aerospace

Boeing 777-8F vs Airbus A350F: Comparing two legend aircraft

Boeing 777-8F vs Airbus A350F: Comparing two legend aircraft

In the world of aviation, competition is a constant force. With the aftermath of the COVID pandemic, many airlines have been making a strong comeback, showing robust profit margins. Furthermore, the demand for freight services has been on the rise, necessitating the need for high-end aircraft in this sector.

In this narrative journey, we’re about to embark on, we’ll delve into the realm of two exciting newcomers in the freighter aircraft segment: the Airbus A350 Freighter and the Boeing B777-8 Freighter.

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These aircraft are born from the same lineage as their passenger counterparts but have been reimagined for the world of cargo transportation. Our exploration will take us through the fascinating similarities and differences between these two aircraft, examining their capacity, operational viability, and what they bring to the airlines that operate them.

Airbus A350F

The A350F can be seamlessly integrated into airline fleets, delivering step-change efficiency in terms of volume, range, and payload.

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Airbus is proud to bring the A350F as the only choice for the future of the large widebody freighter market

The A350F, as proclaimed by Airbus, possessed an almost otherworldly ability: it showcased an unbeatable fuel efficiency that set a new benchmark for its competitors. With awe-inspiring prowess, it achieved a staggering 40% reduction in fuel consumption and carbon dioxide emissions when compared to the venerable 747F.

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But the brilliance of the A350F didn’t end there. It was a revelation in seamless integration for airline fleets. As if answering the prayers of airlines worldwide, this aircraft seamlessly joined its ranks, ready to revolutionize air travel. Its introduction marked a step-change in aviation efficiency, touching every aspect of the industry.

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Boeing’s 777x Aircraft and the Evolution of Air Freight

Boeing is keeping pace with advancements in aviation, showcasing its much-anticipated Boeing 777x aircraft, currently in the testing phase. Responding to Qatar Airways’ call, Boeing is exploring the development of a 777X-based freighter to replace the existing 777Fs.

This cutting-edge aircraft boasts next-generation avionics and technology, featuring a powerful engine that significantly elevates its performance. The extended wing structure not only enhances aerodynamics, reducing drag during cruising for improved fuel efficiency but also contributes to lower fuel consumption.

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Introducing the 777-8 Freighter, Boeing extends its freighter family as the world’s most capable and fuel-efficient freighter, aligning with sustainability goals. The Boeing freighter family ensures optimal payload capacity and range capabilities, all while maintaining superior economics. This includes the high-volume 747-8 Freighter and the long-range 777 Freighter, solidifying Boeing’s commitment to delivering innovative solutions for the future of air freight.

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Boeing 777-8F vs Airbus A350F – Specifications
A350F777-8F
Length70.8m70.8m
Height17.1m19.5m
Wingspan68.75m71.8m
Maximum take-off weight (MTOW)319,000kgTBC
Cargo capacity main deck30 pallets main deck,
12 in lower hold
30 pallets main deck,
12 in the lower hold
Total cargo volumeTBC766.1m3
Net revenue payload109,000kg112,264kg
Range4,700nm4,410nm
Engines2x Rolls-Royce Trent XWB2x General Electric GE9X

Boeing 777-8F and A350F Capacity

The A350F is derived from the A350-1000 and the 777-8F will have the key features of Boeing’s 777X design, including its carbon-fiber wing – the longest single composite part ever developed for an aircraft.

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The 777-8F will be slightly larger than the A350F, with a marginally longer fuselage, taller height, and a wider wingspan. At 70.8m, the A350F will be slightly shorter than the 73.7 m-long passenger A350-1000.

On cargo payload and range, Airbus says the A350F will carry 109,000kg over 4,700nm. Boeing’s data notes the 777-8F will carry 112,300kg over 4,410nm.

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And while the A350F’s main-deck cargo hold will have capacity for 30 pallets (measuring 244 x 318cm), with another 12 of the same size in the lower hold, the 777X will carry 31 pallets (again 244 x 318cm) on the main deck, and 13 in its lower hold. Essentially, the 777-8F will carry slightly more cargo, but the A350F will be able to fly further.

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Boeing 777-8F and A350F efficency


Airbus stands to gain significant advantages by promptly introducing the A350F into service, recognizing the absence of a compelling cargo aircraft in its portfolio. Leveraging the already-established certification of the A350 family further reinforces its position.

In contrast, Boeing adopts a more measured approach, as the continued reception of orders for the 777F allows for sustained production over the next five years. This strategy provides a smoother transition toward the eventual production of the 777-8F.

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The European aircraft manufacturer highlights that the A350 F will feature a 17% increase in revenue cargo volume and a payload capacity of 3,000kg greater than the current generation Boeing’s 777-9F.

In contrast, Boeing asserts that Boeing’s 777-9F will outperform the current Boeing 777F by carrying 17% more revenue payload. Boeing aims to provide the “highest payload and long-range capability” to explore new markets while ensuring a balance of “low operating cost with high reliability.”

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Airbus emphasizes the A350 F unparalleled space for customers, claiming an 11% volume increase that accommodates an additional 5 pallets. The A350 F boasts a lighter Maximum Takeoff Weight of 30 tonnes and an impressive 99.5% operational reliability.

Further setting it apart, the Airbus A350 F features a cargo side door that surpasses competitors in size. Additionally, it promises a 20% reduction in fuel burn, contributing to enhanced efficiency and sustainability.

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Airbus stands to gain significant advantages by promptly introducing the A350 F into service, recognizing the absence of a compelling cargo aircraft in its portfolio. Leveraging the already-established certification of the A350 family further reinforces its position.

In contrast, Boeing adopts a more measured approach, as the continued reception of orders for Boeing’s 777-9F allows for sustained production over the next five years. This strategy provides a smoother transition toward the eventual production of Boeing’s 777-9F.

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B777-8F and A 350F orders as of Nov 2023


Currently, both freighter versions of these aircraft are pending. The Airbus A350, initially known for its passenger variant, is already operational in the market, catering efficiently to the passenger segment. Airbus is now extending its capabilities by developing the freighter version, scheduled for its maiden flight in 2026. Since its introduction in July 2021, Airbus has secured 39 firm orders for the A350F, with the unveiling of the inaugural aircraft’s livery at the Paris Air Show.

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On the Boeing front, the 777-8F aircraft is undergoing a transition from the passenger to the freighter version. The cargo variant, 777-8F, is anticipated to be introduced in 2028. In contrast, the passenger version, 777-8, does not have a confirmed timeline. Qatar Airways, a major customer, has placed orders for approximately 74 aircraft, with additional orders from various other airlines, totaling around 90 aircraft as of 2023. Boeing currently leads in terms of order volume compared to Airbus.

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Aerospace

Airbus Helicopters Pioneers Tablet-Controlled Autonomous Helicopter

Airbus Helicopters Pioneers Tablet-Controlled Autonomous Helicopter

Airbus Helicopters has successfully conducted initial flight tests of an innovative autonomous rotorcraft flight control system, capable of being operated entirely through a tablet computer.

This development mirrors Airbus’s previous demonstration of controlling the A350 aircraft from taxiing to takeoff and landing, extending the same technological application to helicopter control.

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The Vertex project, a three-year initiative supported by Airbus‘ UpNext innovation arm and co-funded by France’s Civil Aviation Authority, has showcased fully autonomous helicopter flight, covering takeoff, cruise, approach, and landing phases.

Operating helicopters, which rely on complex head rotors, poses unique challenges compared to fixed-wing aircraft. Even minor pilot inputs can lead to significant errors and potential crashes.

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The primary focus of these efforts is to enhance safety in light helicopter operations and pave the way for autonomous electric advanced air mobility systems.

Airbus Helicopters FlightLab H130

The flight tests were conducted using the Airbus Helicopters FlightLab H130 technology demonstrator aircraft. Airbus utilizes its labs to actively test and develop supporting technologies for the aviation industry’s future.

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The autonomous system integrates a four-axis autopilot to provide a level of flight envelope protection, with the autopilot also managing the engines.

During the testing phase, the pilot monitored the system, which demonstrated the ability to detect unforeseen obstacles and automatically adjust the flight path for safety.

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The pilot retained the option to override controls through the tablet interface when necessary and resume the mission. This comprehensive flight testing occurred from October 27th to November 22nd at the Airbus Helicopters facility in Marignane, France.

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Airlines

U.S. airlines lose 2 million suitcases a year. Where do they end up?

U.S. airlines lose 2 million suitcases a year. Where do they end up?

The holidays are expected to be extremely busy, according to the Transportation Security Administration. A fortunate few will be among the millions of people returning home without their bags as they head back from their Thanksgiving vacations.

Where do all those misplaced bags wind up, next? Journalist Melanie Peeples set out to investigate. All suitcases that are misplaced by US airlines and are not picked up by their owners ultimately arrive at Unclaimed Baggage.

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In Scottsboro, Alabama, it occupies an entire city block and is a massive store. Every day, 7,000 new things are added to the inventory. And all of it is offered at a steep discount.

It is set up like a department store, with bookshelves filled with books and clothing and shoes around because, let’s face it, who hasn’t misplaced a book on a plane? But the jackpot is just up these stairs.

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The mezzanine is the most crowded part of the store. Thus, this is where our electronics division is located. However, things up here are even more fascinating. It functions as follows: Up to three months are spent by the airline attempting to return a misplaced suitcase or pole-vaulting shipping container to its owner. However, the airline gives up after three months and compensates the owner back up to $3,800.

Statistically speaking, 99.5% of checked luggage on airlines does not disappear. All of it just adds up to a lot—the 0.5% that does.

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Comac unveils new smaller and larger variants of the C919

Comac unveils new smaller and larger variants of the C919

China’s leading aircraft manufacturer, Comac, has announced that two new C919 narrowbody aircraft variants are being developed to meet a variety of operational needs both inside and outside of China.

The C919 Stretched Variant and the C919 Shortened/Plateau Variant are the names of these variants that were on display at the Shanghai International Commercial Aviation & Aerospace Industry Exhibition. Comac seeks to emulate Airbus’ A320 series and Boeing’s 737 MAX models by providing a range of sizes for its standard narrowbody model.

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With 210 seats in a two-class arrangement, the C919 Stretched Variant, according to Comac, “conforms to the trend of large-scale development of single-aisle aircraft market.”

The Shortened/Plateau configuration can accommodate 140 passengers and has takeoff and landing performance suitable for all high-altitude airports in China. It has “good potential,” according to Comac, for more derivatives.

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With over 10 million passengers flown, Comac’s regional jet, the ARJ21, has achieved a noteworthy milestone. A China Southern Airlines ARJ21 aircraft on the Guangzhou-Jieyang route served as a symbol of this accomplishment. As a result of its increasing presence in regional aviation, the ARJ21 is currently estimated to operate 1,800 weekly flights throughout China and Indonesia.

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