Boeing has been improved. Can CEO Kelly Ortberg keep it up?

After he spiraling from crisis to crisis for most of the past seven years, Boeing It is stable under the leadership of CEO Kelly Ortberg.

Ortberg, a longtime aerospace executive and engineer who fixed the company that had manufacturers retreated from retirement and stayed in trouble, is set up this week to outline some of the great advances since he was at the helm a year ago. Boeing reported its quarterly results and gave its outlook on Tuesday.

So far, investors like what they’ve seen. The company’s stock has so far increased by more than 30% this year.

Wall Street analysts hope to halve the second quarter losses reported by the aircraft manufacturers. Ortberg told investors in May that the manufacturer hopes to generate cash later in the year. Boeing’s aircraft production is on the rise, with the plane’s delivery just reaching its highest level in 18 months.

This was a shift for Boeing, and while its past leaders have irritated investors and customers by missing out on targets about aircraft delivery schedules, certifications, financial goals and cultural change, rival Airbus has moved forward.

“The general agreement is that culture has changed after decades of self-harmed knife wounds,” said Richard Aboulafia, managing director of aerodynamic Advisory, an aerospace consulting firm.

Analysts expect the company to record its first annual profit since 2018 next year.

“When he got to work, I wasn’t as optimistic as I am today,” said Douglas Harnedo, senior aerospace and defense analyst at Bernstein.

Autoberg’s work had already been cut out for him, but the challenges increased when he arrived.

Ortberg announced major cost cuts, including firing 10% of the company after the company bleed cash. The mechanics who make up most of the planes continued on strike for seven weeks until the company and unions signed a new labor contract. Ortberg also oversaw more than $20 billion in capital raise last fall, replacing the head of the defense unit and selling the Jeppesen navigation business.

Autoberg bought a house in the Seattle area. There, Boeing makes most of the planes right after he got to work last August.

“He’s showing up,” Abrafia said. “You will come in and you will talk to people.”

Boeing refused to make Ortberg available for interviews.

Boeing leaders wanted a turnaround year in 2024. However, in five days, when I climbed from Portland, the door plug exploded from the almost new Boeing 737 Max 9. Nearly bold people have brought Boeing to slow production, renewing Federal Aviation Administration scrutiny and billions of cash burning.

Keybolt was away from the plane before it was delivered. Alaska Airlines. This is the latest in a series of quality issues at Boeing, with other defects requiring time-consuming rework.

Boeing has already been caught up in two deadly biggest crashes in 2018 and 2019, bringing the reputation of America’s biggest exporter. The company in May reached an agreement with the Department of Justice to avoid prosecution resulting from a fight on previous criminal conspiracy charges that led to the crash. The victim’s family condemned the deal when it was announced.

For years, executives of top Boeing airline clients have publicly complained about manufacturers and their leadership as they tackled the delays. Ryanair CEO Michael O’Leary told investors in May 2022 that management needed to “reboot or boot the butt.”

Last week, O’Leary had another song.

“I continue to believe in Kelly Autoberg. [and Boeing Commercial Airplane unit CEO] Stephanie Pope does a great job,” he said in a revenue call.

United Airlines CEO Scott Kirby raised doubts about the Boeing 737 Max 10 following the door plug accident in January 2024. The plane is not yet certified, but Kirby says Boeing has increased predictability due to the supply of planes.

Still, the largest Max 10 delay in the Max family, and the still-unqualified Max 7 delays are a headache for customers, especially as they can determine the profitability of the airline if there are too few or too many seats in the flight.

“They are working on the right issues. Delivery consistency is much better.” Southwest Airlines CEO Bob Jordan said in an interview last month. “But there are no up to 7 updates. We assume they haven’t flew to 2026.”

Boeing under Autoburg still has a lot to fix.

The FAA concluded Boeing production with a maximum of 38 a month. To surpass that, Boeing needs the blessings of the FAA up to a target of 42.

Ortberg said this year that the company is stable to exceed that rate. Manufacturers are paid when the aircraft is delivered, so higher production is important.

“You’d think they’ll have those arguments soon,” Harnedo said. “It’s 47 [a month] I think it’s a challenging break. ”

He added that Boeing has a lot of stock on hand to increase production.

The defense unit is also struggling. The Defense Unit includes programs such as the KC-46 Tanker Program and Air Force One. Trump is unhappy with the delays in two new jets aimed at serving the president, and could turn to a second-hand Qatar Boeing 747 to use as a presidential aircraft, but insiders say used planes could require months of re-fitting.

Autoberg replaced the head of that unit last fall.

“They aren’t completely out of the woods,” Harnedo said.

Boeing and Autoberg need to start thinking about new jets, some industry members said. Its bestseller 737 first debuted in 1967, and the company was looking at a medium sized jet liner before the two crashes caught attention elsewhere.

“There was already a reversal from ‘Read My Lips, New Jet’. I want to see it accelerated,” Abrafia said. “He’s the one who makes it happen.”