Boeing, other airlines see boost in quarterly profit
Boeing Co. posted a quarterly profit that exceeded expectations and boosted its full-year forecast, helped by a strong recovery in the commercial airplane market, Reuters reported.
The world’s largest aerospace and defense company’s order backlog rose, especially on the commercial side of its business, helped by a surge in orders from the Middle East and Asia.
“So far, the increase in the commercial side is more than compensating for the softening defense business,” Wedbush Securities analyst Kenneth Herbert said in an interview with Reuters, referring to concerns that budget pressures will lead the United States and Europe to scale back weapons spending.
“Airlines are starting to significantly order jets again after essentially taking 18 months off,” he added.
The global airline industry has rebounded this year from the 2008 and 2009 economic downturn that drained travel demand and caused airlines to slash capacity and halt orders. Top airlines are reporting better results this year. Today Delta Air Lines Inc. and US Airways Group Inc., which serve Des Moines International Airport, both reported higher-than-expected quarterly profits.