President Donald Trump has assigned Boeing, an aerospace giant, to develop the Next-Generation Air Dominance Platform, described as potentially the most lethal aircraft ever constructed. Boeing’s CEO, Kelly Ortberg, expressed his commitment to safeguarding the company’s progress against potential setbacks from the trade war involving the U.S. and other nations, particularly China.
Prior to the company’s quarterly earnings release, Ortberg communicated with Boeing employees through a letter that highlighted the company’s advancement in four key areas of its recovery plan. He also addressed how ongoing trade disputes might affect the firm. Ortberg noted that despite closely monitoring global trade developments, Boeing’s strong start to the year, coupled with robust demand for airplanes and a half-trillion-dollar backlog in products and services, positions the company well to navigate current challenges.
During an earnings call, Ortberg assured analysts of his confidence in Boeing’s annual plan, despite anticipating that trade issues with China might reduce some of the operational leeway gained through strong first-quarter deliveries.
Ortberg indicated that China is the only nation where Boeing has encountered issues with aircraft deliveries due to the Trump administration’s tariffs. However, he stated that the company is vigilantly monitoring potential European retaliation and maintains regular communication with the White House. He emphasized consistent engagement with top U.S. administration officials.
In terms of trade tariffs, Boeing faces a 10% tax on imports from countries like Japan and Italy but anticipates recovering some costs upon exporting aircraft. Ortberg revealed that China has returned two of the three aircraft ready for delivery because of halted acceptance amid trade tensions. Boeing had planned around 50 aircraft deliveries to China for the year but remains pragmatic about sales strategies during the dispute, considering options to redirect unfinished aircraft to other customers.
In 2024, Boeing encountered manufacturing quality problems causing regulatory constraints on its production of the 737 Max, along with a strike affecting late-year production. Ortberg detailed plans for a careful increase in 737 Max production, which is crucial for cash generation. Additionally, Boeing aims to conduct more flights of the Starliner space program later in the year.
