Boeing turns first profit in almost 2 years, shares jump 5%

July 28 (Reuters) – Boeing Co (BA.N) on Wednesday posted its first quarterly profit in almost two years as revived domestic travel fueled 737 MAX deliveries, and shares rose 5% despite festering U.S.-China relations and depressed long-haul travel.

The 737 MAX is integral to Boeing’s financial recovery. The U.S. planemaker is scrambling to recoup billions of dollars in lost sales from the pandemic andmove beyond the safety scandal caused by two fatal 737 MAX crashes. It also must deal with structural defects of its bigger, more profitable 787 planes.

Higher defense and services sales boosted results and Boeing still expects to turn cash flow positive in 2022. Shares were up roughly 5% at $234 in afternoon trading even as the Dow Jones Industrial Average (.DJI) dipped.

Chief Executive Officer David Calhoun told employees in a message that Boeing plans maintain stable staffing with a workforce of around 140,000. Previously the company had targeted a reduction to 130,000 by the end of 2021.

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Source: Reuters, Ankit Ajmera, Eric Johnson