Category Archives: Boeing

Boeing reports its second quarter results

  • Revenue increased to $24.3 billion reflecting 194 commercial deliveries and higher defense and services volume
  • GAAP EPS of $3.73 and core EPS (non-GAAP)* of $3.33 on solid execution across the company
  • Strong operating cash flow of $4.7 billion; repurchased 8.6 million shares for $3.0 billion
  • Backlog grew to $488 billion, including nearly 5,900 commercial airplanes
  • Cash and marketable securities of $9.8 billion provide strong liquidity
  • Raised revenue and updated segment margin guidance

Table 1. Summary Financial Results

Second Quarter

First Half

(Dollars in Millions, except per share data)

2018

2017

Change

2018

2017

Change

Revenues

$24,258

$23,051

5%

$47,640

$45,012

6%

GAAP

Earnings From Operations

$2,710

$2,530

7%

$5,585

$4,736

18%

Operating Margin

11.2%

11.0%

0.2 Pts

11.7%

10.5%

1.2 Pts

Net Earnings

$2,196

$1,749

26%

$4,673

$3,328

40%

Earnings Per Share

$3.73

$2.87

30%

$7.88

$5.41

46%

Operating Cash Flow

$4,680

$4,949

(5)%

$7,816

$7,047

11%

Non-GAAP*

Core Operating Earnings

$2,393

$2,173

10%

$4,903

$4,033

22%

Core Operating Margin

9.9%

9.4%

0.5 Pts

10.3%

9.0%

1.3 Pts

Core Earnings Per Share

$3.33

$2.49

34%

$6.97

$4.67

49%

* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”     

The Boeing Company reported its second quarter revenue of $24.3 billion reflecting higher commercial deliveries and mix, defense volume and services growth (Table 1). GAAP earnings per share increased to $3.73 and core earnings per share (non-GAAP)* increased to $3.33 reflecting solid execution across the company. Results also reflect a charge related to the previously announced Spirit litigation outcome ($0.21 per share). Boeing delivered strong operating cash flow of $4.7 billion, repurchased $3.0 billion of shares, and paid $1.0 billion of dividends.

The company’s revenue guidance increased $1 billion to between $97.0 and $99.0 billion, driven by defense volume and services growth. Commercial Airplanes margin guidance is increased to greater than 11.5% on strong performance and Defense, Space & Security margin guidance was adjusted to reflect the impact of cost growth on the KC-46 Tanker program.

“We are seeing the results of our One Boeing approach as our teams work together across the Boeing enterprise to deliver value to our customers and grow our business.  In the quarter, we generated improved revenue and earnings, delivered strong cash and captured $27 billion in new orders,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg.

“We celebrated the first anniversary of the launch of Boeing Global Services and the one-year revenue service anniversary of the 737 MAX. We booked 239 net commercial airplane orders in the quarter, which included 59 787s – further demonstrating the value this airplane family brings to our customers. Solid progress continued on the 777X program with the first two test aircraft currently being built in the factory. We finalized the production contract for 28 F/A-18 Super Hornets for Kuwait, completed production of the 100th P-8 Poseidon, and conducted two successful tests for the U.S. Air Force’s Minuteman III. Our services business delivered the first 737 Boeing Converted Freighter and secured performance based logistics contracts to support rotorcraft in the Netherlands. Additionally, customers continued to recognize the value of our digital solutions with Etihad Airways signing a contract to implement our crew management solutions.”

“Continued services growth, increasing defense volume and strong performance of our commercial business, as well as our positive market outlook, give us the confidence to raise our revenue and Commercial Airplanes margin guidance for the year. We remain focused on execution, driving innovation, continuing to develop and maintain the best team and talent in the industry, and increasing value for our customers, shareholders, employees and other stakeholders.”

Table 2. Cash Flow

Second Quarter

First Half

(Millions)

2018

2017

2018

2017

Operating Cash Flow

$4,680

$4,949

$7,816

$7,047

Less Additions to Property, Plant & Equipment

($376)

($439)

($770)

($905)

Free Cash Flow*

$4,304

$4,510

$7,046

$6,142

* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”

Operating cash flow in the quarter of $4.7 billion reflects planned higher commercial airplane production rates, strong operating performance, and timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 8.6 million shares for $3.0 billion, leaving $12.0 billion remaining under the current repurchase authorization which is expected to be completed over approximately the next 18 to 24 months. The company also paid $1.0 billion in dividends in the quarter, reflecting a 20 percent increase in dividends per share compared to the same period of the prior year.

Table 3. Cash, Marketable Securities and Debt Balances

Quarter-End

(Billions)

Q2 18

Q1 18

Cash

$8.1

$9.2

Marketable Securities1

$1.7

$0.7

Total

$9.8

$9.9

Debt Balances:

The Boeing Company, net of intercompany loans to BCC

$9.6

$10.0

Boeing Capital, including intercompany loans

$2.5

$2.5

Total Consolidated Debt

$12.1

$12.5

1 Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”

Cash and investments in marketable securities totaled $9.8 billion, compared to $9.9 billion at the beginning of the quarter (Table 3). Debt was $12.1 billion, down from $12.5 billion at the beginning of the quarter due to repayment of debt.

Total company backlog at quarter-end was $488 billion, up from $486 billion at the beginning of the quarter, and included net orders for the quarter of $27 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

Second Quarter

First Half

(Dollars in Millions)

2018

2017

Change

2018

2017

Change

Commercial Airplanes Deliveries

194

183

6%

378

352

7%

Revenues

$14,481

$14,280

1%

$28,133

$27,233

3%

Earnings from Operations

$1,644

$1,282

28%

$3,152

$2,152

46%

Operating Margin

11.4%

9.0%

2.4 Pts

11.2%

7.9%

3.3 Pts

Commercial Airplanes second-quarter revenue was $14.5 billion reflecting higher deliveries and mix (Table 4). Second-quarter operating margin increased to 11.4 percent, reflecting strong operating performance on production programs, including a higher 787 margin, partially offset by a charge of $307 million related to cost growth on the KC-46 Tanker program. This cost growth was primarily due to higher estimated costs of incorporating changes into six flight test and two early build aircraft as well as additional costs as we progress through late stage testing and the certification process. We continue to make steady progress towards final certification for KC-46 Tanker and recently completed all flight tests required to deliver the first aircraft, which is expected to be in October this year as now agreed upon with the U.S. Air Force.

During the quarter, Commercial Airplanes delivered 194 airplanes, including delivery of the first 737 MAX airplanes to Jet Airways, Ethiopian Airlines, and Xiamen Airlines. The 737 MAX program celebrated the one year anniversary of entering revenue flight service and continues to be well received in the market with over 4,600 orders since its launch. The 777X program remains on track for delivery in 2020 as the first two test airplanes moved into the low-rate initial production line.

Commercial Airplanes booked 239 net orders during the quarter, including 91 widebodies. Backlog remains robust with nearly 5,900 airplanes valued at $416 billion.

Defense, Space & Security

Table 5. Defense, Space & Security

Second Quarter

First Half

(Dollars in Millions)

2018

2017

Change

2018

2017

Change

Revenues

$5,593

$5,142

9%

$11,355

$10,254

11%

Earnings from Operations

$521

$614

(15)%

$1,170

$1,163

1%

Operating Margin

9.3%

11.9%

(2.6) Pts

10.3%

11.3%

(1.0) Pts

Defense, Space & Security second-quarter revenue increased to $5.6 billion driven by F/A-18 and weapons volume (Table 5). Second-quarter operating margin was 9.3 percent, primarily reflecting KC-46 Tanker cost growth of $111 million, partially offset by solid execution and favorable mix.

During the quarter, Defense, Space & Security finalized a production contract for 28 F/A-18 Super Hornets for Kuwait, received contracts for 18 additional F/A-18 Super Hornets and 3 P-8 Poseidon aircraft for the U.S Navy, and was awarded a multi-year contract for 58 V-22 Osprey aircraft. Significant milestones during the quarter included induction of the first F/A-18 aircraft into the Service Life Modification program, two successful tests for the U.S. Air Force’s Minuteman III, and the completion of the 100th P-8 Poseidon aircraft. On the commercial satellites side, we successfully completed O3b mPOWER preliminary design review with SES.

Backlog at Defense, Space & Security was $52 billion, of which 35 percent represents orders from international customers.

Global Services

Table 6. Global Services

Second Quarter

First Half

(Dollars in Millions)

2018

2017

Change

2018

2017

Change

Revenues

$4,090

$3,552

15%

$8,033

$7,205

11%

Earnings from Operations

$603

$569

6%

$1,247

$1,192

5%

Operating Margin

14.7%

16.0%

(1.3) Pts

15.5%

16.5%

(1.0) Pts

Global Services second-quarter revenue increased to $4.1 billion, reflecting growth across the portfolio (Table 6). Second-quarter operating margin was 14.7 percent reflecting product and services mix.

During the quarter, Global Services was awarded an F/A-18 depot maintenance contract for the U.S. Navy and Marine Corps and secured rotorcraft performance based logistics contracts for the Netherlands. Global Services also contracted to implement crew management solutions at Etihad Airways and captured a Global Fleet Care contract for Primera Air’s 737 fleet. Global Services also entered into an agreement to acquire KLX Aerospace which will broaden our range of offerings and increase customer value, and agreed to a strategic partnership with Safran for auxiliary power units as we strengthen Boeing’s vertical capabilities and expand our services portfolio.

Additional Financial Information

Table 7. Additional Financial Information

Second Quarter

First Half

(Dollars in Millions)

2018

2017

2018

2017

Revenues

Boeing Capital

$72

$72

$137

$164

Unallocated items, eliminations and other

$22

$5

($18)

$156

Earnings from Operations

Boeing Capital

$24

$25

$44

$64

FAS/CAS service cost adjustment

$317

$357

$682

$703

Other unallocated items and eliminations

($399)

($317)

($710)

($538)

Other (loss)/income, net

($15)

$25

$51

$51

Interest and debt expense

($109)

($93)

($211)

($180)

Effective tax rate

15.1%

29.0%

13.9%

27.8%

At quarter-end, Boeing Capital’s net portfolio balance was $3.0 billion. Total pension expense for the second quarter was $70 million, down from $94 million in the same period of the prior year. The change in earnings from other unallocated items and eliminations is primarily due to the previously announced litigation charge. The effective tax rate for the second quarter decreased from the same period in the prior year primarily due to the reduction of the federal tax rate to 21%.

Outlook

The Company’s 2018 guidance is updated below (Table 8).

Table 8. 2018 Financial Outlook

Current

Prior

(Dollars in Billions, except per share data)

Guidance

Guidance

The Boeing Company

Revenue

$97.0 – 99.0

$96.0 – 98.0

GAAP Earnings Per Share

$16.40 – 16.60

$16.40 – 16.60

Core Earnings Per Share*

$14.30 – 14.50

$14.30 – 14.50

Operating Cash Flow

$15.0 – 15.5

$15.0 – 15.5

Commercial Airplanes

Deliveries

810 – 815

810 – 815

Revenue

$59.5 – 60.5

$59.5 – 60.5

Operating Margin

>11.5%

~11.5%

Defense, Space & Security

Revenue

$22.0 – 23.0

$21.5 – 22.5

Operating Margin

10.0 – 10.5%

~11.0%

Global Services

      Revenue

$15.5 – 16.0

$15.0 – 15.5

      Operating Margin

~15.5%

~15.5%

Boeing Capital

Portfolio Size

Stable

Stable

Revenue

~$0.2

~$0.2

Pre-Tax Earnings

~$0.07

~$0.05

Research & Development

~$3.7

~$3.7

Capital Expenditures

~$2.2

~$2.2

Pension Expense 1

~$0.1

~$0.1

Effective Tax Rate

~16.0%

~16.0%

* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”

1 Approximately $1.4 billion of pension expense is expected to be allocated to the business segments

Non-GAAP Measures Disclosures

We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:

Core Operating Earnings, Core Operating Margin and Core Earnings Per Share

Core operating earnings is defined as GAAP earnings from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per shareexcluding the net earnings per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings/per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on pages 14-15.

Free Cash Flow

Free cash flow is defined as GAAP operating cash flow without capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.

 

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Boeing warns of a pilot shortage

Boeing has made this announcement:

Boeing today released its 2018 Pilot & Technician Outlook, projecting demand for 790,000 pilots over the next 20 years. This represents double the current workforce and the most significant demand in the outlook’s nine-year history.

The demand is being driven by an anticipated doubling of the global commercial airplane fleet — as reported in Boeing’s Commercial Market Outlook — as well as record-high air travel demand and a tightening labor supply. This year’s outlook also includes data from the business aviation and civil helicopter sectors for the first time.

“Despite strong global air traffic growth, the aviation industry continues to face a pilot labor supply challenge, raising concern about the existence of a global pilot shortage in the near-term,” said Keith Cooper, vice president of Training & Professional Services, Boeing Global Services. “An emphasis on developing the next generation of pilots is key to help mitigate this. With a network of training campuses and relationships with flight schools around the globe, Boeing partners with customers, governments and educational institutions to help ensure the market is ready to meet this significant pilot demand.”

Boeing offers the Pilot Development Program – an accelerated training program that guides future pilots from early stage ab-initio training through type rating as a first officer – to help operators meet their growing pilot needs. Boeing also helps operators improve crew efficiency with tools that optimize resources and minimize disruption.

Despite the commercial pilot demand forecast holding nearly steady, maintenance technician demand decreased slightly from 648,000 to 622,000, primarily due to longer maintenance intervals for new aircraft. Collectively, the business aviation and civil helicopter sectors will demand an additional 155,000 pilots and 132,000 technicians.

Demand for commercial cabin crew increased slightly from 839,000 to 858,000, due to changes in fleet mix, regulatory requirements, denser seat configurations and multi-cabin configurations that offer more personalized service. In addition, 32,000 new cabin crew will be required to support business aviation.

For more information about the Pilot & Technician Outlook, please visit: http://www.boeing.com/commercial/market

For the 2018 Business Environment Update, please visit: http://www.boeing.com/commercial/market/boeing-market-insight

Photo: Boeing.

Boeing announces new commitments with two airlines for 15 787 Dreamliners

Boeing and two undisclosed airlines have reached agreements to buy a total of 15 787-9 Dreamliners valued at $4.2 billion per current list prices, the company announced at the 2018 Farnborough International Airshow.

One of the airlines would become a new 787 customer. The second airline is adding more 787s to their Dreamliner fleet. Both commitments will be reflected on Boeing’s Orders and Deliveries website once they are finalized.

The new commitments continue Boeing’s sales momentum on the 787 Dreamliner program. With orders announced during the Farnborough Airshow, Boeing has achieved nearly 100 net orders for the 787 this year, along with reaching additional commitments that will be finalized in the coming months. In all, 71 customers have purchased nearly 1,400 airplanes. Half of the customers have returned to place follow-on orders.

Boeing signs commitment with customer for 100 737 MAX Airplanes

Boeing and an unidentified customer reached an agreement during the 2018 Farnborough International Airshow for an additional 100 737 MAX airplanes, the company announced.

The commitment carries a list-price value of $11.7 billion and will be reflected on Boeing’s Orders and Deliveries website once it is finalized.

Boeing signs commitments for 40 high-capacity 737 MAX 8s, 53 MAX 8 airplanes

Boeing and four customers have signed commitments for a total of 93 737 MAX airplanes, including a carrier that has committed to 40 of the high-capacity version of the MAX 8 airplane. The commitments, valued at nearly $11 billion at current list prices, were announced at the 2018 Farnborough International Airshow.

The agreements will be reflected on Boeing’s Orders and Deliveries website when they have been finalized. The four unidentified customers hail from the airline and airplane leasing industries.

Images: Boeing.

Boeing forecasts $15 trillion commercial airplanes and services market

Boeing announced this forecast:

Boeing lifted its long-term forecast for commercial airplanes as rising passenger traffic and upcoming airplane retirements drive the need for 42,730 new jets – valued at $6.3 trillion – over the next 20 years. The global airplane fleet will also sustain growing demand for commercial aviation services, leading to a total market opportunity of $15 trillion.

The company’s annual forecast, renamed the Commercial Market Outlook (CMO) to include detailed analysis of the dynamic aviation services market, was presented today at the Farnborough International Airshow. Recognized as an industry benchmark for global air travel forecasting, the 2018 CMO projects the total number of airplanes increasing 4.1 percent over the previous forecast.

“For the first time in years, we are seeing economies growing in every region of the world. This synchronized growth is providing more stimulus for global air travel. We are seeing strong traffic trends not only in the emerging markets of China and India, but also the mature markets of Europe and North America,” said Randy Tinseth, vice president of Commercial Marketing for The Boeing Company. “Along with continued traffic expansion, the data show a big retirement wave approaching as older airplanes age out of the global fleet.”

According to fleet data, there are more than 900 airplanes today that are over 25 years old. By the mid 2020’s, more than 500 airplanes a year will reach 25 years of age – double the current rate – fueling the retirement wave. Tinseth said the data explain why 44 percent of the new airplanes will be needed to cover replacement alone, while the rest will support future growth.

Including airplanes that will be retained, the global fleet is projected to essentially double in size to 48,540 by 2037.

The single-aisle segment will see the most growth over the forecast period, with a demand for 31,360 new airplanes, an increase of 6.1 percent over last year. This $3.5 trillion market is driven in large part by the continued growth of low-cost carriers, strong demand in emerging markets, and increasing replacement demand in markets such as China and Southeast Asia.

The widebody segment calls for 8,070 new airplanes valued at nearly $2.5 trillionover the next twenty years. Widebody demand is spearheaded, in part, by a large wave of replacements beginning early in the next decade and airlines deploying advanced jets such as the 787 Dreamliner and 777X to expand their global networks.

Additionally, Boeing projects the need for 980 new production widebody freighters over the forecast period, up 60 airplanes over last year. In addition, operators are forecasted to buy 1,670 converted freighters.

New Airplane Deliveries through 2037 by size

Airplane type

Seats

Total deliveries

Market value

Regional jets

90 and below

2,320

$110 billion

Single-aisle

90 and above

31,360

$3,480 billion

Widebody

8,070

$2,480 billion

Freighter widebody

———

980

$280 billion

Total

———

42,730

$6,350 billion

The massive fleet generates a strong and growing demand for aviation services ranging from supply chain support (parts and parts logistics), to maintenance and engineering services, to aircraft modifications, to airline operations. Over the next 20 years, Boeing forecast an $8.8T market for commercial aviation services with annual growth of 4.2 percent.

“The commercial airplane business fuels an enormous ecosystem of service providers.  Our combined forecast shows the full picture of the $15T commercial market ahead of us,” Tinseth said. “We see a market in which airlines outsource more and more, a market in which data and data analytics help aircraft and airline networks become more efficient and reliable, and a market in which new technologies provide new services solutions. All of these trends drive greater demand for integrated solutions over the life of an airplane.”

Major categories in the services forecast include the $2.3 trillion market for Maintenance & Engineering, which covers tasks required to maintain or restore the airworthiness of an aircraft and its systems, components, and structures. Another major category is the $1.1 trillion market for Flight Operations, which covers services associated with the flight deck, cabin services, crew training and management, and airplane operations.

Commercial Aviation Services through 2037 by service category

Service category

Market value

Corporate & External

$145 billion

Marketing & Planning

$540 billion

Flight Operations

$1,115 billion

Maintenance & Engineering

$2,365 billion

Ground & Cargo Operations

$4,665 billion

In terms of the geographic split of the new forecast, the airplane and services demand are similarly geared toward the major growth markets. The Asia Pacificregion, which includes China, will continue to lead the way, accounting for 40 percent of total airplane deliveries and 38 percent of total services value. North America and Europe round out the top three.

Commercial market through 2037 by region

Region

Airplane deliveries

 Services market

Asia Pacific

16,930

$3,365 billion

North America

8,800

$1,850 billion

Europe

8,490

$1,875 billion

Middle East

2,990

$745 billion

Latin America

3,040

$515 billion

Russia/C.I.S.

1,290

$265 billion

Africa

1,190

$215 billion

Total

42,730

$8,830 billion

Formerly known as Boeing’s Current Market Outlook, the CMO is the longest running jet forecast and regarded as the most comprehensive analysis of the commercial aviation industry. The full report can be found at www.boeing.com/cmo.

Forward-Looking Information Is Subject to Risk and Uncertainty

Certain statements in this release may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “forecasts,” “projects,” “plans,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future plans, business prospects, financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict.

Many factors could cause actual events to differ materially from these forward-looking statements, including economic conditions in the United States and globally, general industry conditions as they may impact us or our customers, and other important factors disclosed previously and from time to time in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update or revise any such statement, except as required by law.

All images by Boeing.

Video:

Boeing to showcase the future of aerospace at Farnborough International Airshow

Boeing today announced its plans to reveal the exciting future of air and space travel at the 2018 Farnborough International Airshow, which takes place July 16-22.

From hypersonic travel to the future of autonomous flight to manned space flight, Boeing will visually present the innovations that will revolutionize the way humans travel around the world and into space. Boeing will also highlight its award-winning portfolio of commercial and defense products and its broader services business that offers unmatched lifecycle value. This “One Boeing” approach has produced a strong and steady commercial, defense and services order book this year, as the company continues to compete and win across the full spectrum of its capabilities.

Visitors can immerse themselves in a large 360-degree theater and board next-generation aircraft through virtual and mixed reality devices. The interactive exhibit showcases Boeing’s latest family of aircraft and services, and gives visitors a first look at what the company is developing in its second century of aerospace innovation. The exhibit (P7) will be located opposite Hall 1.

Flying and Static Displays

On the airfield, the 737 MAX 7, which is scheduled to enter service in 2019, will make its air show debut with flying displays from July 16-19. Technology advancements allow the MAX 7 to fly 1,000 nautical miles farther and carry more passengers than its predecessor, the 737-700, while having 18 percent lower fuel costs per seat.

Boeing 737-7 MAX 7 N7201S (msn 42561) BFI (Joe G. Walker). Image: 941582.

Above Copyright Photo (all other photos by Boeing): Boeing 737-7 MAX 7 N7201S (msn 42561) BFI (Joe G. Walker). Image: 941582.

Boeing’s flying display will also include a Biman Bangladesh 787-8 featuring the breakthrough capabilities and innovations that have made the 787 extremely popular with operators and passengers. Since 2011, almost 700 super-efficient Dreamliners have been delivered to operators, flying more than 250 million people while saving an estimated 25 billion pounds of fuel.

Other commercial airplanes on display at the show include an Air Italy 737 MAX 8, a Qatar Airways 777-300ER, CargoLogicAir and Qatar Airways 747-8 Freighters, and a Royal Air Maroc 767 Boeing Converted Freighter, which will be at the Cargo Village from July 16-18. Boeing is also participating in the Cargo Village to showcase its family of freighters and lifecycle commitment through Services.

The U.S. Department of Defense is scheduled to display several Boeing platforms, including the AH-64 Apache attack helicopter, the CH-47 Chinook heavy-lift helicopter, the F-15E Strike Eagle and the C-17 Globemaster military transport aircraft.

Leadership Presence

Senior Boeing leaders at the show will include Chairman, President and CEO Dennis Muilenburg, Chief Financial Officer and Executive Vice President of Enterprise Performance & Strategy Greg Smith and the heads of the company’s three business units:

  • Boeing Commercial Airplanes President and CEO Kevin McAllister;
  • Boeing Defense, Space & Security President and CEO Leanne Caret;
  • Boeing Global Services President and CEO Stan Deal.

Other senior Boeing executives at the show will include:

  • Marc Allen, President, Boeing International;
  • Heidi Capozzi, Senior Vice President, Human Resources;
  • Ted Colbert, Chief Information Officer, Senior Vice President, Information Technology & Data Analytics;
  • Greg Hyslop, Chief Technology Officer, Senior Vice President, Engineering, Test & Technology;
  • Tim Keating, Executive Vice President, Government Operations;
  • Phil Musser, Senior Vice President, Communications;
  • Jenette Ramos, Senior Vice President, Manufacturing, Supply Chain & Operations.

Note: All times listed below are local to Farnborough.

Tuesday, July 17Wednesday, July 18

The 737 MAX 7 will be available for tours to accredited members of the news media:

  • Tuesday, July 17 – 11.00 – 11.30, the digital and analytics enabled jet. Preview the industry-changing applications that are enabling fundamental shifts to information infrastructure in the age of digital evolution.
  • Wednesday, July 18 – 11.00-11.30

Tuesday, July 17

09.30   Future of Travel and Transport – Boeing Exhibit Theatre, P7 opposite Hall 1

Chief Technology Officer Greg Hyslop and HorizonX Vice President Steve Nordlund will unveil Boeing’s vision of next-generation commercial mobility systems and plans for shaping the global infrastructure that will enable piloted and autonomous air vehicles to safely co-exist in the same ecosystem.

10.30    2018 Commercial Market OutlookBoeing Media Chalet Theatre

Boeing Commercial Marketing Vice President Randy Tinseth will reveal the 2018 Commercial Market Outlook (CMO), the latest 20-year forecast of expected demand for commercial airplanes and services. The CMO is one of the longest-published and most accurate forecasts in the aviation industry.

11.45    The Compelling Future of Air Cargo Conference Theatre, Cargo Village

Boeing Commercial Marketing Vice President Randy Tinseth will provide the air cargo market outlook and Boeing’s analysis of the latest growth trends in the cargo industry.

12.30    U.S. Navy P-8 Media Briefing – Boeing Media Chalet Theatre

Capt. Tony Rossi, United States Navy, will provide an update on the P-8 anti-submarine and anti-surface warfare aircraft.

15.00    V-22 Joint Program Office Media Briefing Lloyd Room, Media Centre Hall 1A

V-22 Program Manager Col. Matthew G. Kelly, United States Marine Corps, will provide an update on the current status of the V-22 Osprey tiltrotor aircraft.

Wednesday, July 18

12.05    Developing Cargo Aircraft Conference Theatre, Cargo Village

Boeing Commercial Airplanes Vice President of Product Strategy and Future Airplane Development Mike Sinnett will participate in the panel discussion to share Boeing’s views on developing future cargo aircraft.

Thursday, July 19

Boeing Closing Press Conference Boeing Media Chalet Theatre

Boeing Commercial Sales & Marketing Senior Vice President Ihssane Mounir and Boeing Defense, Space & Security Vice President of Global Sales & Marketing Jeff Shockey will host a closing press conference.

Friday, July 20

10.00    Futures Day Lectures for students – Boeing Media Chalet Theatre

Richard Pillans, Boeing Chief Test Pilot and former British Army Helicopter Pilot and Flight Commander, will speak to Boeing apprentices and young people about his experiences leading the team that oversees all flight operations for Boeing Defence UK, including the Royal Air Force (RAF) Chinook fleet. 2018 marks 100 years of the RAF and through the Futures Day youth engagement activities, Boeing is supporting the RAF’s ambition to champion STEM and inspire the next generation of aviators. A second session will be held at 11.00.