Boeing’s CEO is trying to find buyers for 50 planes after Chinese airlines cancelled their orders amid Trump’s trade war
Boeing CEO Kelly Ortberg said on Wednesday that he is not expecting the United StatesCommercial war with ChinaTo prevent the company's financial takeover, nor prevent it from achieving aircraft delivery targets with Chinese airlines now refusing to accept Boeing planes.
Speaking on CNBC, Ortberg said Boeing had three line planes in China ready to deliver, but had brought two of them to Seattle so far because the Chinese airlines have ordered the planes “have stopped taking aircraft because of the tariff environment”.
Beijing increased his import tax125% American productsThis month in retaliation for US President Donald Trump, increasing the product rateDone in China at 145%. The price of China would double the cost of passenger jets than Boeing, the largest American exporter, sells tens of millions of dollars.
While the company had planned to finish 50 orders from Chinese airlines this year, Ortberg said that Boeing “actively evaluated” the options to divert these lines from other interested buyers.
“This is an unhappy situation, but we have many customers who want short-term deliveries, so we plan to redirect the supply of stable demand, and we will not continue to build planes for customers who will not take them,” he said during a call conference with analysts.
The swayBetween Washington and Beijing, there is less threat to Boeing than it would have been ten years ago, while about a quarter of the finished aerospace giant giants went to China, according to the investment banking company Jefferies.
The activities of the company in China fell in 2019, when the country became the first to anchor all the Boeing737 Max planesFollowing a pair of deadly accidents whichkilled 346 peopleLess than five months apart. Chinese airlines only resumed maximum flights in January 2023, much later than other carriers from other countries.
China is currently representing around 10% of an order of orders worth $ 500 billion that Boeing is expecting that the chief financial officer erased, said director Brian West.
About 70% of commercial aircraft that the company plans to deliver in 2025 concern international customers, West said. If the prices push countries apart from China to retaliate and repelAccept planes“We would be able to see an additional pressure” on Boeing de Boeing's food, he said.
“Given our position as an important American exporter, free trade policy in aerospace trade remains very important for us,” said West.
The continuation of Trump prices to counter what he describes as the unfair trade policies of other nations arise while Boeing seemed to turn the page on a series of problems, including a panel blowing a maximum 737 in flight andA labor strikeThis closed production last year. The company has seenhis incomeAnd the value of the action decreases sharply.
Ortberg said the financial results of the first quarter that Boeing said on Wednesday indicated that the company's recovery plan “is in full swing and shows signs that it is effective, although early”.
Boeing posted an adjusted loss of 49 cents per turnover of $ 19.5 billion. The results exceeded the expectations of analysts interviewed by Zacks Investment Research, who provided a loss of $ 1.54 per share on turnover of $ 19.29 billion.
The company also considerably reduced its cash burns to around $ 2.29 billion compared to almost $ 4 billion in the previous year.
Boeing actions, based in Arlington, Virginia, increased 6.6% in the afternoon trade.
Trump announced radical rates on April 2 which triggered panic in the financial markets and generated fears of recession. The presidentPut a partial plug of 90 days on import taxesBut has already increased his ownStrong prices against China.
US Treasury SecretaryScott Bessentsaid in aspeechOn Tuesday, this situation was not sustainable and he expected a “de -escalation” in the trade war between the two biggest economies in the world.
This story was initially presented on Fortune.com
