Boeing has reported high profits from April to June 2014 boosted by “strong” commercial aircraft sales.
Boeing’s net profits rose 52% to $1.65 billion from the same period last year.
During a quarter which saw the company deliver its first Dreamliner 787-9 aircraft, Boeing’s earnings from commercial aircraft operations helped to offset a fall in defense profits.
Separately, Delta Air Lines reported a 17% rise in profits thanks in part to higher fares.
Earnings from Boeing’s defense, space and security business fell 25% to $582 million, but profits from commercial aircraft rose 7% to around $1.6 billion.
Boeing boosted its full-year earnings forecast to between $7.90 and $8.10 per share, up from its previous forecast of $7.15 to $7.35 per share.
“Overall, our strong first-half financial performance, sustained focus on growth and productivity, and positive market outlook support our increased earnings guidance for the year,” said Boeing CEO Jim McNerney.
Boeing’s earnings from commercial aircraft operations helped to offset a fall in defense profits
Boeing expects higher full-year profits in part due to second-quarter tax settlements totaling $408 million.
The company said commercial aircraft deliveries rose 7% to 181 in the three month period. The total included 30 Dreamliner jets.
Boeing grounded a number of aircraft last year, including the Dreamliner fleet, following two incidents where batteries caught fire.
The aircraft maker said it had a total order book worth $440 billion, with more than 5,200 orders for commercial aeroplanes.
“With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse,” Jim McNerney said.
Meanwhile, US carrier Delta Air Lines announced second quarter earnings rose 17%, to $801 million from a year ago.
Passengers flew more miles, at higher average fares, and fuel spending declined, the company said. Delta’s average fuel price was $2.93 per gallon in the quarter. The company owns its own refinery in Philadelphia.
The results from Delta come before American and United post second quarter figures on Thursday. Analysts expect the biggest US carriers to report large profits.
Boeing has requested airlines from worldwide to carry out inspections of a transmitter used to locate aircraft after a crash.
A UK regulator had recommended the inspection after a fire broke out on a 787 Dreamliner jet parked at Heathrow airport earlier this month.
It was traced to the upper rear part of the plane where the part – Emergency Locator Transmitter (ELT) – is fitted.
Boeing said it had asked operators of 717, Next-Generation 737, 747-400, 767 and 777 airplanes to inspect aircraft.
“We’re taking this action following the UK Air Accidents Investigation Branch [AAIB] Special Bulletin, which recommended that airplane models with fixed Honeywell ELTs be inspected,” Randy Tinseth, vice president marketing for Boeing Commercial Airplanes, said in a blog post.
“The purpose of these inspections is to gather data to support potential rulemaking by regulators.”
Boeing has requested airlines from worldwide to carry out inspections of a transmitter used to locate aircraft after a crash
As a result of the fire on the parked Ethiopian Airlines plane, London’s Heathrow airport was closed for 90 minutes.
After the fire, the regulator had asked all Boeing 787s switch off an electrical component until further notice and suggested a safety review of similar components in other aircraft.
In a statement, the AAIB had said that the component needed more “airworthiness action”.
It had said that “it was not clear whether the combustion in the area of the ELT was initiated by a release of energy within the batteries or by an external mechanism such as an electrical short”.
It added that as the ceiling space where the ELT is located does “not typically carry the means of fire detection… had this event occurred in flight it could pose a significant safety concern and raise challenges for the cabin crew in tackling the resulting fire”.
Honeywell International, the company that makes the emergency transmitters, had said that it backed the proposal to switch them off while investigations continued, but added that it was “premature to jump to conclusions”.
Last week, two airlines disclosed issues with the wiring on their Boeing 787’s emergency transmitters,
Japan’s All Nippon Airways (ANA), the world’s biggest operator of Dreamliners, said last week it found damage to the battery wiring on two 787 locator transmitters during checks.
United Airlines said that it found a pinched wire during an inspection of one of its six 787s.
