{"text":[[{"start":7.4,"text":"Boeing reported continuing improvement in its commercial airliner business, but its overall results were dragged down by the continued travails of an Air Force One refurbishment programme."}],[{"start":17.98,"text":"The Virginia-based aerospace group, which is still recovering from the fallout of two fatal crashes involving its 737 Max jets in 2018 and 2019, reported second-quarter revenues of $24.6bn and free cash flow of $631mn as deliveries of commercial jets rose to 171 from 143 in the first three months of the year."}],[{"start":43.42,"text":"Reflecting steady improvements in efficiency under chief executive Kelly Ortberg, who took charge in 2024, the commercial aerospace division’s operating margin improved to minus 2.7 per cent from minus 5.1 per cent a year ago."}],[{"start":59.28,"text":"“Our teams are increasing production and delivering at levels we have not seen since 2018,” Ortberg told investors on Tuesday, adding that certification efforts for new versions of the narrow-body 737 and wide-body 777 models remain on track for deliveries to begin next year."}],[{"start":77.48,"text":"Boeing shares closed 4.8 per cent higher on Tuesday."}],[{"start":81.46,"text":"But the company’s defence division posted an unexpected loss following $280mn in new costs incurred by the Air Force One refurbishment programme, which was negotiated by Donald Trump during his first term in 2018 as a $3.9bn fixed-price contract."}],[{"start":98.1,"text":"The contract, which is four years behind schedule and involves the overhaul of two 747-8 jets for use by the US president, has left Boeing exposed to billions of dollars in extra costs."}],[{"start":109.72,"text":"Ortberg’s predecessor Dave Calhoun said in 2022 that the contract had been the result of “a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken.”"}],[{"start":120.88,"text":"In June, Trump took delivery of a 747 jet valued at $400mn that was given to him as a personal gift by the Emir of Qatar, and which he said would be transferred to his presidential library once he left office, giving him use of the plane in perpetuity."}],[{"start":137.04,"text":"The president used the Qatari-gifted jet to fly to the Nato summit in Ankara earlier this month, but he returned to the US on an older model after the Secret Service raised concerns about its vulnerability to a missile attack following a rushed upgrade, the New York Times reported."}],[{"start":150.56,"text":"The additional losses on the Air Force One programme pushed Boeing’s net loss for the quarter to $428mn, but Ortberg told investors the setback “shouldn’t overshadow all the meaningful progress we’re making to reduce the risk across our defence portfolio, and we are in much better shape than we were two years ago”."}],[{"start":170.34,"text":"“Like in our commercial business, the demand signal on our defence and space products remains very strong, with notable increased demand in missile and munitions and secure communications satellites programmes,” he added."}],[{"start":182.32,"text":"“As I continue meeting with our customers, suppliers and partners, they all say the same thing: a different, better Boeing is showing up,” Ortberg wrote."}],[{"start":192.32,"text":"The company remains under scrutiny from US regulators following the Max crashes and an incident in 2024 when a door plug blew out of an Alaska Airlines jet."}],[{"start":201.86,"text":"The Federal Aviation Administration issued a directive on Monday telling US airlines to inspect the seats on hundreds of 737 Max jets as they might not have been installed properly."}],[{"start":213.36,"text":"Boeing maintains its expectation of achieving positive free cash flow for the year, which would be the first time it has reached the milestone since 2023."}],[{"start":223.12,"text":"Robert Stallard, an analyst at Vertical Research Partners, said that “while another charge in defence is hardly welcome, we expect investors to be happy about the return to positive free cash flow in the second quarter”."}],[{"start":239.84,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1785286724_3673.mp3"}