Boeing reports smaller first-quarter loss as aircraft deliveries increase

Boeing’s Q1 2025 results beat expectations despite trade war headwinds and job cuts.

A Boeing 737 Max aircraft under construction at the company’s manufacturing facility in Renton, Washington, on April 15, 2025. Photo by David Ryder/Bloomberg

By Anna Fadiah and Hayu Andini

Boeing reported a smaller-than-expected first-quarter loss for 2025, as a notable increase in aircraft deliveries offered a degree of financial relief after a year marked by operational disruptions, trade tensions, and a mid-air incident that rocked the company’s reputation. The aerospace manufacturer’s latest results indicate that efforts to stabilize production and improve delivery rates are beginning to yield results, even as external pressures remain intense.

The company posted a net loss of $31 million for the first quarter ending March 31, a significant improvement from the $355 million loss reported in the same period last year. The result surpassed analyst expectations, boosting investor confidence. Boeing’s revenue for the quarter rose 18 percent to $19.5 billion, primarily driven by a surge in aircraft deliveries.

This outcome reflects a more stable operational environment, especially compared to previous quarters weighed down by production halts and safety reviews. Boeing delivered 130 aircraft in Q1, up from 83 during the same period in 2024. The delivery tally included 104 of its best-selling 737 Max jets, a model that has faced global scrutiny in the past but continues to anchor the company’s commercial portfolio.

Loss per share narrows as operations stabilize

On an adjusted basis, Boeing recorded a loss of $0.49 per share, considerably lower than the $1.13 per share loss a year ago and also better than the $1.24 loss forecast by analysts. This improvement contributed to a 5 percent rise in Boeing shares during pre-market trading on Wednesday.

Free cash flow, though still in negative territory, also improved. Boeing reported a negative free cash flow of $2.3 billion, compared to a negative $3.9 billion a year earlier. The company continues to invest in production quality and delivery efficiency, both of which remain key to regaining investor and customer trust.

Kelly Ortberg, who took over as Boeing’s chief executive in August 2024 following a high-profile safety crisis, described 2025 as Boeing’s “turnaround year.” In a message to employees, Ortberg expressed cautious optimism, stating, “We’re building higher quality airplanes and delivering them with more predictability.”

Digital aviation sale boosts finances amid restructuring

In a strategic move to reinforce its balance sheet, Boeing announced plans to sell parts of its digital aviation business to private equity firm Thoma Bravo for $10.6 billion. The sale is intended to provide additional liquidity as the company continues to recover from the financial strain of recent years.

This decision follows a broader restructuring campaign that began in 2024, when Boeing raised $24 billion in equity and announced plans to cut 17,000 jobs as part of cost-saving measures. Ortberg said these actions are necessary to rebuild the company’s foundation and position it for long-term growth.

Despite its restructuring efforts, Boeing continues to face challenges from global trade policies, particularly in relation to the escalating tariff conflict under the Trump administration. China, one of Boeing’s largest international markets, has imposed retaliatory tariffs that have rendered the company’s jets significantly more expensive for Chinese airlines.

Production targets on track for 2025

Boeing reaffirmed its production goals for 2025, stating that it remains on target to manufacture 38 units of the 737 Max per month. Meanwhile, production of its 787 Dreamliner jets has stabilized at five per month, with a goal of reaching seven monthly by the end of the year.

These figures suggest a return to operational normalcy, with supply chain issues and safety reviews no longer derailing output as they had in previous quarters. Increased demand from airline customers, especially in North America and parts of Europe, has helped buoy Boeing’s commercial aircraft division.

Ortberg emphasized the importance of maintaining production momentum in his address to employees, saying the company’s progress would provide Boeing with “the flexibility we need to navigate this environment.”

Trade tensions pose ongoing threat to international sales

The most pressing external challenge for Boeing remains the Trump administration’s trade war, particularly with China. The aerospace giant is one of the largest U.S. exporters and has long relied on sales to Chinese airlines to fuel its international growth.

However, Beijing’s decision to impose punitive tariffs on U.S.-made goods has already impacted Boeing’s order book. Several Chinese carriers have reportedly deferred aircraft deliveries, citing cost concerns stemming from the new tariffs.

The financial data released on Wednesday only includes tariffs that were enacted as of March 31, meaning any subsequent policy changes could further complicate Boeing’s international sales outlook. Nevertheless, Ortberg said the company is “closely watching the developments in global trade” while continuing to prioritize production quality and customer satisfaction.

Long road to full recovery

While Boeing’s first-quarter results provide a degree of reassurance to investors, the path to sustained profitability remains uncertain. The company still faces regulatory scrutiny, strained relations with foreign customers, and the broader challenge of rebuilding its brand after a series of damaging incidents.

Boeing’s rebound will depend on a mix of internal discipline and external stabilization. A resolution to the ongoing trade tensions would provide a major boost, particularly if it leads to renewed orders from China. Additionally, consistent improvements in safety compliance and production efficiency will be necessary to sustain the momentum established in the first quarter.

Analysts have welcomed the latest results but remain cautious. Several warned that the gains made so far could be easily undone if the company fails to maintain its delivery pace or if geopolitical developments lead to another sharp downturn in international orders.

Still, the sentiment within Boeing appears markedly more positive than a year ago. Ortberg, in his internal communication, reiterated that the company’s strategic focus is on “execution, quality, and trust,” signaling a return to basics after a turbulent period.

As Boeing continues to reposition itself in a highly competitive global aviation market, the next few quarters will be critical. Investors and stakeholders will be closely watching whether the early signs of a turnaround translate into sustained success, or if external shocks threaten to derail the fragile recovery.