Boeing posted a loss of $109 million for Q3 2021, compared with a loss of $449 million in the same period last year. The company announced $1 billion in new expenses connected with the 787 Dreamliner, with $183 million coming in the third quarter.
Boeing halted deliveries of the 787 in May following a series of issues with the plane. Earlier this month, the company said it would rework undelivered 787s after being notified by a supplier that some parts were not manufactured properly.
Still, the company posted a revenue of $15.3 billion, driven by higher commercial airplanes and services volume. Operating cash flow improved to $0.3 billion in the quarter, reflecting higher commercial deliveries, higher order receipts, and lower expenditures. Operating cash flow was also favorably impacted by a $1.3 billion income tax refund in the quarter.
Commercial Airplanes third-quarter revenue increased to $4.5 billion primarily driven by higher 737 deliveries, partially offset by lower 787 deliveries. Operating margin improved to 15.5% primarily due to higher deliveries.
Since the FAA’s approval to return the 737 MAX to operations in November 2020, Boeing has delivered more than 195 737 MAX aircraft and airlines have returned more than 200 previously grounded airplanes to service. 31 airlines are now operating the 737 MAX.
The current 787 production rate is approximately two airplanes per month. The company expects to continue at this rate until deliveries resume and then return to five per month over time. The low production rates and rework are expected to result in approximately $1 billion of abnormal costs, of which $183 million was recorded in the quarter.
Commercial Airplanes secured orders for 70 737 MAX, 24 freighter, and 12 787 airplanes. Commercial Airplanes delivered 85 airplanes during the quarter and backlog included over 4,100 airplanes valued at $290 billion.