Boeing CEO Kelly Ortberg told CNBC on Monday that the plane maker will need “a couple more years” to repair its finances before launching a new commercial jet, signaling that the company is focused more on stabilizing its existing business rather than rushing to develop a successor to its bestselling 737 MAX.
Boeing must clear three hurdles before committing to a new aircraft program, Ortberg told CNBC’s Phil LeBeau at the Farnborough International Airshow in the U.K.
“First of all, we have to be ready, and part of that is getting our financial house in order, and we’re working on that,” Ortberg said. “It’s going to take a couple more years to get where we want to be.”
Ortberg, who came out of retirement to steady the company after a series of manufacturing and quality issues and a near-catastrophic blowout of a fuselage door plug in January 2024, also repeated that the technology needs to be ready to introduce a new airplane and the company needs to see sufficient market demand.
For now, airline customers are telling Boeing to focus on improving the reliability and production of its current lineup rather than introducing a new jet, he said, suggesting the company is unlikely to launch a new narrow-body aircraft until later in the decade.
The market for large commercial aircraft is currently dominated by Boeing and Airbus. A new plane to better compete with Airbus’ rival A320 family of jets will likely be crucial for Boeing to secure future business.
Boeing and Airbus shares this year.
On Monday, Airbus CEO Guillaume Faury told CNBC that it is targeting a next-generation single-aisle jet around 2030, with entry into service in the second half of that decade, framing it as key to defending Airbus’ lead in the market.
“We’re the leader in the single-aisle segment, and we want to retain that position,” Faury said on the sidelines of Farnborough, while adding that focus is also on ramping up production of current aircraft.
Both Boeing and Airbus have been plagued by supply crunches following the Covid-19 pandemic, and have struggled to meet demand for new aircraft from customers.
This year, investor sentiment around Airbus has turned more sour as Boeing has made progress to get back on track under Ortberg after the company’s yearslong crisis.
Both companies are set to report second-quarter earnings later this month.
Air Force One
Boeing will increase spending and add engineering and production staff to keep the next generation of Air Force One aircraft on schedule for delivery in 2028, Ortberg said.
The company will run multiple shifts on the VC-25B program as well as add production and engineering staff, the CEO said.
The high-profile project has already faced multiple delays and was initially set for delivery in 2024.
