Despite Dreamliner issues, Boeing profits soar
Boeing's 787 Dreamliner has caused the company myriad problems this year, but those problems aren't translating into poor financial performance.
In the second quarter, Boeing reports a 9 percent rise in revenue to $21.8 billion and beat expectations with a 13 percent rise in profits. The company also placed $40 billion in orders for new planes and delivered 16 Dreamliners, compared to six last year, according to Reuters. All of this has helped push Boeing's stock prices to all-time highs.
So why isn't Boeing taking a financial hit from the Dreamliner blunders? Simply put, demand is high for aircrafts and Boeing can't get new aircrafts to airlines fast enough. For the Dreamliners alone, nearly 1,000 have been ordered with fewer than 100 delivered.
Airlines and experts also seem confident that the Dreamliner problems are just growing pains for a plane that will be around for a long time, Bloomberg Businessweek points out. We saw that confidence last month at the Paris Air Show when Boeing received over 100 new orders for the 787 even though the plane had been grounded much of the year.
Plus, with essentially two major aircraft makers, and the global aircraft fleet expected to double in the next 20 years, airlines don't have much of a choice but to give Boeing leeway in making things right with the Dreamliner.
Read more: Boeing
Photo: Flickr/WingsOfMan
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This post was originally published on Smartplanet.com