Leeham News and Analysis
There's more to real news than a news release.
Ortberg becomes more cautious about 737 MAX production ramp timing
By Scott Hamilton
Boeing CEO Kelly Ortberg. Credit: Getty Images.
July 30, 2025, © Leeham News: Boeing CEO Kelly Ortberg began to walk back just a bit about the timeline to ramp up production of the 737 MAX during the 2Q2025/1H2025 earnings call.
It’s the first time that LNA has seen a little equivocation.
In previous interviews and earnings calls, Ortberg said that once the Federal Aviation Administration (FAA) approves, Boeing would ramp up production of the 737 MAX every six months in increments of five.
For example, Boeing is currently producing the MAX at a rate of 38/mo (although July may fall short, according to tracking by Planespotters). The next rate, subject to FAA approval, is 42/mo (yes, this is only four, not five, but this is the figure Boeing has said). After that, Ortberg has said repeatedly that rate breaks in increments of five would be every six months. LNA was skeptical from the start.
Jamie Baker and Mark Streeter, the airline analysts for JP Morgan, came up with an apt term when discussing the Southwest Airlines guidance that applies equally here: “Very Aggressive and Seemingly Unobtainable (or VASU for short).”
In response to questions from an analyst, Ortberg began walking back on the 2Q earnings call yesterday.
Boeing’s CEO Kelly Ortberg, “Our recovery plan is taking hold.”
By Karl Sinclair
Boeing CEO Kelly Ortberg. Credit: Getty Images.
July 29, 2025, © Leeham News: The Boeing Company (BA) President and CEO Kelly Ortberg is confident that, despite there still being work to do, he likes the direction that the company is headed in.
“We’re making steady progress to stabilize our business, strengthen development program execution, and change our culture to set up for the future,” he said on the 1H2025 earnings call.
While the company still reported a loss for the quarter, it was less than expected, and there were signs of improvement in areas that were projected to take longer to turn around.
Related Article
• Boeing 1H2025: Turnaround underway
Despite projections in the first quarter that 2025 would be a loss-making year for the company, along with a substantial drain on cash reserves, management was pleased to note that things were progressing along in a timely and orderly manner.
“I’m pretty pleased with where we are through the first half and through my first year. I’m not surprised with the performance of the company and the recovery. We’ve got great people in the company,” said Ortberg.
Boeing is first and foremost a commercial aircraft manufacturer. The company will go as that division does.
Boeing 1H2025: Turnaround underway, led by revenue jump at Boeing Commercial and positive results at Defense
By Karl Sinclair
First half 2025 financial results.
July 29, 2025, © Leeham News: The Boeing Company (BA) released 1H2025 results, and while the corporation still posted a net loss of ($643) for the first six months of 2025, strong revenues at Boeing Commercial Aircraft (BCA) indicate that the company has turned the corner and is back on track.
Revenues leapt $8.8bn, year-over-year (YoY), as did margins, which increased $1.747bn. This resulted in positive earnings of $285m for the period, a turnaround of $1.461bn.
The net loss for the period was driven by interest expense of $1.418bn, an increase of $176 YoY. However, results are a marked improvement over 2024, when the company had a loss of $1.794bn. Service revenues showed a marginal increase, while sales of products increased $8.507bn.
Boeing Commences 777-8 Freighter Production
July 28, 2025, (c) AIN: Boeing has officially begun series production of the 777-8 Freighter at its widebody factory in Everett, Washington. About 100 Boeing employees gathered inside the 777X Composite Spar Shop on July 21 to observe as a robotic arm ceremoniously drilled the first hole in a 777-8F wing spar.
It is the first of 938 holes that will be drilled into every wing spar assembled at that location, explained Ben Linder, vice president and chief engineer for Boeing’s 777 and 777-8F programs. Drilling all 938 holes with the automated robot arm, which Boeing calls the Spar Assembly Robotic Cell (SPAC), will take five eight-hour shifts, he told reporters at the Everett facility.
The full story may be found on AIN here.
What’s the next new aircraft, Part 4
By Bjorn Fehrm
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July 28, 2025, © Leeham News: In Part 4 of our five-part series on examining the potential next generation of aircraft in the coming decades, we take a closer look at Aircraft 5 to 8 in our Figure 1.
Figure 1. The 13 airliners we look at in the series. Source: Leeham Co.
These are the (5) GE, NASA, and Boeing hybrid airliner, (6) Airbus ZEROe hydrogen airliner, (7) Boeing’s NMA, and (8) the Boeing New Light Twin.
We examine the market for these aircraft, their technological challenges, and their potential future.
Bjorn’s Corner: Air Transport’s route to 2050. Part 32. Epilogue.
By Bjorn Fehrm
July 25, 2025, ©. Leeham News: In October last year, we began a series on how air transport is performing against the emission goals for the year 2050.
The ambition to reduce and eventually eliminate greenhouse gas emissions began in earnest 11 years ago, when Airbus flew the Airbus E-Fan at the 2014 Farnborough Air Show (Figure 1).
Figure 1. The Airbus E-fan flying at the 2014 Farnborough Air Show. Source: Wikipedia.
The result of this inspiring flight, which utilized technology that emitted no CO2 or other greenhouse gases (if the batteries were charged with green electricity), was an avalanche of projects from established players as well as upstarts. The optimistic view was that there was a solution to the emissions from airliners.
MTU powers ahead with strong growth amid clarity on tariff impact
By Tom Batchelor
Jul 24, 2025, © Leeham News: German engine manufacturer MTU has posted a 40% rise in operating profit for the first half of 2025 amid what outgoing CEO Lars Wagner called “robust growth” across both commercial OEM and MRO segments.
Adjusted EBIT rose by 40% to €657 million ($773 million) in H1 2025, compared with €470 million in the first half of 2024, with adjusted revenue of €4.1 billion, an increase of 21%, versus €3.4 billion in the first half of 2024.
Wagner said it was an “exceptionally strong” performance for the first six months of the year.
For the second quarter, MTU posted an adjusted EBIT of €357 million euros, higher than Q2 2024’s €252 million and comfortably beating analysts’ consensus estimate of €300m.
Adjusted revenue stood at €2 billion, up from €1.8 billion in Q2 2025.
What’s the next new aircraft? Part 3
By Scott Hamilton and Bjorn Fehrm
Subscription Required
July 24, 2025, © Leeham News: In Part 3 of our five-part series on examining the potential next generation of aircraft in the coming decades, we take a closer look at Aircraft projects 1 to 4 in our Figure 1.
Figure 1. The 13 airliner ideas we look at in the series. Source: Leeham Co.
These are the (1) A220-500, (2) Boeing’s Transonic Truss Brace Wing (TTBW), (3) Boom’s Overture Super Sonic Transport (SST), and (4) the Blended Wing Body (BWB) aircraft suggested by leading proponent Jet Zero.
US House Panel approves jump in FAA budget
- AIN’s Oshkosh Air Venture show news is here.
House Panel Approves Budget Jump for FAA in 2026
House bill to provide a $23.3 billion budget for FAA in 2026
By Kerry Lynch • Editor, AIN monthly magazine
July 18, 2025
The U.S. House Appropriations Committee yesterday approved a $23.3 billion budget for the FAA in Fiscal Year (FY) 2026, more than a $2.3 billion increase over the agency’s funding in the current year and including enough for the hiring of 2,500 air traffic controllers. The FY2026 transportation, housing, and urban development (THUD) bill passed 35-to-28 after a nearly eight-hour markup, drawing opposition from Democrats over funding measures primarily involving the HUD side of the bill.
The full story on AIN may be found here.
DOT Chief Continues Push for More ATC Funding
Duffy says FAA needs $31.5 billion to completely upgrade ATC
By Kerry Lynch • Editor, AIN monthly magazine
July 17, 2025
U.S. Transportation Secretary Sean Duffy continued his push for further federal investment into modernization of the air traffic control system, reiterating to lawmakers yesterday that it will take $31.5 billion “to do the full project.”
Duffy appeared before the full House Transportation and Infrastructure Committee to discuss a range of priorities for the Department of Transportation.
The full story on AIN may be found here.
NASA’s Quiet Supersonic Jet Completes First Taxi Tests
By Amy Wilder • Writer
July 18, 2025
NASA’s X-59 quiet supersonic research aircraft completed its first taxi test on July 10, the initial movement of the experimental jet under its own power. The test took place at U.S. Air Force Plant 42 in Palmdale, California, and signals the start of the final phase of ground testing before first flight.
The full story on AIN may be found here.
Pratt & Whitney Plots Next Century of Aircraft Engines
Aircraft engine maker Pratt & Whitney is celebrating its 100th anniversary today, having entered the market with its R-1340 Wasp radial engine in 1925. The company, which is now part of the RTX aerospace and defense group, has more than 90,000 engines in service worldwide on a variety of airplanes and helicopters.
The full story on AIN may be found here.
RTX Q2 2025 Earnings: Tariff Relief, GTF Stabilization, Strong Demand, and FAA Tailwinds Lift Outlook
By Chris Sloan
July 22, 2025, © Leeham News: RTX delivered strong second-quarter results, supported by continued momentum in the commercial aerospace sector, stabilization in its geared turbofan program, and a significant aftermarket ramp across Pratt & Whitney and Collins Aerospace.
Executives highlighted improving supply chain conditions and growing demand as key contributors, while also noting upcoming FAA modernization investments as a long-term opportunity. Despite ongoing trade friction and a sizeable tariff burden, RTX raised its full-year sales outlook and reaffirmed its free cash flow guidance. Executives said recent developments on the tariff front—including favorable exemptions and successful mitigation strategies—helped soften the impact and improve visibility heading into the second half.
“Our outlook on the impact of tariffs has improved for the year,” said RTX President and Chief Executive Christopher Calio. The company originally expected a $850m tariff headwind in 2025 but has since lowered that figure to $500m. Calio attributed half of the reduction to external developments such as the paused implementation of new rates and the UK’s decision to exempt aerospace components. The remainder, he said, came from the company’s mitigation actions, including optimizing material flows through its supply chain, taking pricing actions where possible, and leveraging trade agreements such as USMCA.
RTX has already incurred approximately $125m in tariff costs through the first half of the year, with the remaining $375m expected in the second half. Of that, $275m is expected to impact Collins Aerospace, and $225m will affect Pratt & Whitney. CFO Neil Mitchill Jr. said roughly $60m and $40m in costs have already been recorded at Collins and Pratt, respectively, during Q2. The total cash impact is expected to reach $600m for the year.