Boeing CEO says trade uncertainty, China tensions not expected to affect aerospace giant's rebound

Core Viewpoint - Boeing's CEO Kelly Ortberg emphasizes the company's commitment to navigating the challenges posed by the U.S.-China trade war while maintaining a strong recovery plan and significant backlog of orders [1][2]. Group 1: Trade War Impact - The ongoing trade disputes, particularly with China, are expected to affect Boeing's aircraft deliveries, with Ortberg noting that China is the only country facing delivery issues due to tariffs [5][8]. - Boeing has encountered a 10% tax on imports from countries like Japan and Italy, but anticipates recovering some costs through exports [6]. Group 2: Company Performance and Strategy - Despite challenges, Boeing has a half-trillion-dollar backlog and a strong start to the year, providing flexibility to navigate the current trade environment [2]. - Ortberg expressed confidence in the company's overall plan for the year, although he acknowledged that the situation with China may reduce some of the gains from strong first-quarter deliveries [3]. Group 3: Aircraft Deliveries and Production - China has returned two of the three aircraft ready for delivery due to halted acceptance amid the trade dispute, with Boeing expecting to send around 50 aircraft to China this year [8]. - The company plans to redirect undelivered aircraft to other customers and is optimistic about remarketing built aircraft, indicating a proactive approach to sales during the dispute [9]. Group 4: Manufacturing and Quality Issues - Boeing faced manufacturing quality issues in 2024, leading to regulatory limits on the production of the 737 Max aircraft, compounded by a strike that affected production [11]. - The company aims to cautiously increase output of the 737 Max, which is crucial for cash generation, and plans to conduct more flights of its Starliner space program later this year [12].