Boeing, Airbus Q1 2024 Earnings: Diverging Fortunes
TransportationSummary
Morningstar DBRS released a commentary discussing Boeing’s and Airbus’ diverging Q1 2024 earnings.
Key highlights include the following:
-- Boeing posted a Q1 2024 revenue decline, earnings loss, and material cash burn.
-- Boeing reduced its commercial aircraft deliveries and slowed its targeted production rate as part of major manufacturing process changes in response to product quality and safety issues.
-- By contrast, Airbus posted a solid quarter of results, despite the continued challenging operating environment.
“Boeing's credit profile has been deteriorating, and we expect it to get worse before it possibly gets better. On the other hand, Airbus' credit profile continues to be supported by its ability to increase production in response to steadily growing global demand for commercial aircraft and production processes that have proven to be more resilient than those of its main competitor,” said Tim O’Brien, Managing Director—Corporate Ratings, Diversified Industries. “The story of how this duopoly evolves in the future may largely hinge on what Boeing is able to accomplish over the quarters and years immediately ahead.”
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