Boeing CEO Kelly Ortberg Faces Challenges Amid Optimism for Recovery

Boeing (NYSE:BA) reported an $11.8 billion loss last year, but CEO Kelly Ortberg remains optimistic about the company's future. During its earnings call, Ortberg emphasized progress in fixing production issues, with plans to increase 737 MAX output to 38 per month later this year, pending regulatory approval.

Industry analysts remain cautiously optimistic. Gautam Khanna of TD Cowen noted that since Ortberg took over in August, Boeing has been taking a more measured approach to resolving production setbacks. The company delivered 33 737 MAX jets in January, signaling an improvement. Boeing’s stock has risen 2.8% since Ortberg's appointment, though recent gains were partially reversed.

However, skepticism lingers. Analysts recall past leadership missteps, from 787 delays under James McNerney to Dennis Muilenburg’s handling of the 737 MAX crashes and David Calhoun’s supply chain challenges. Suppliers, burned by previous unfulfilled production goals, remain hesitant to invest. Andrew Flores of Independent Forge, a supplier for the 737 MAX, acknowledged progress but described recovery as a “long tunnel.”

Phil Gibbs of KeyBanc Capital Markets noted that suppliers want to believe in Boeing’s recovery, but many remain wary. Meanwhile, analyst Richard Aboulafia highlighted strained labor relations following last year’s 53-day strike, warning that ramping up production is not the same as achieving strategic stability.

Despite lingering doubts, the demand for Boeing jets remains strong. If Ortberg can rebuild trust with suppliers and employees, Boeing may be on track for recovery.