Boeing named Kelly Ortberg as its new CEO on Wednesday, tasking him with turning around the company after a challenging quarter where it reported a loss of over $1 billion.
Ortberg, a seasoned aerospace industry professional, will begin his role on August 8.
His appointment comes amid a critical quality and trust crisis for Boeing, which recently faced a setback with a mid-air cabin panel blowout on an Alaska Airlines-operated MAX 9 jet.
In the latest quarter, Boeing reported a loss of $1.4 billion on revenues of $16.9 billion, missing the expected $17.2 billion.
The company also posted a loss of $2.90 per share, against the anticipated loss of $1.97.
CFO Brian West indicated that Boeing’s cash flow issues would persist, projecting continued cash burn in the third quarter.
Despite these challenges, Boeing’s stock rose by 4.4% following Ortberg’s appointment.
He is expected to oversee the ramp-up in production of Boeing’s 737 jets, aiming to increase output from around 25 units in June and July to 38 by the end of the year.
This leadership change follows CEO Dave Calhoun’s decision to step down, with board chair Larry Kellner also announcing he will not seek re-election.
Calhoun, who will remain as a special advisor until March 2025, suggested that Ortberg would likely maintain the current leadership team, including Stephanie Pope, head of Boeing Commercial Airplanes.
Calhoun noted, “My guess is he’s going to put his arms around Stephanie and the rest of the team in a big way and just try to support their work.”
The FAA has limited Boeing’s production of its 737 MAX jets to 38 per month due to quality concerns, a cap that remains in place without a specified end date.
Ortberg, 64, has over 30 years of experience in aerospace and defense, including leading Rockwell Collins and overseeing its integration with United Technologies.
His appointment comes as Boeing works on integrating Spirit AeroSystems, following a recent deal to acquire the fuselage maker.
Boeing’s defense and space business has also struggled, with significant losses attributed to cost overruns on fixed-price contracts, exacerbating the company’s financial strain.