After a challenging year, Boeing (NYSE:BA) Chief Executive Kelly Ortberg has garnered praise from aerospace analysts and airline clients for his leadership, the Seattle Times reported on August 8.
Taking the helm in August 2024, Ortberg stepped out of retirement to lead the company during a time of crisis, following a 737 Max incident that disrupted Boeing’s (NYSE:BA) comeback year. The company was grappling with a damaged reputation after the Max crashes and the Covid-19 pandemic’s effect on its supply chain.
Ortberg’s appointment brought optimism, with many analysts believing his blend of fresh perspective and deep aerospace experience would guide Boeing (BA) back on track.
“It was the perfect move,” aviation consultant Adam Pilarski said to the newspaper, adding that Ortberg has met expectations.
Seasoned aerospace veteran
Ortberg’s extensive background includes roles at Texas Instruments and Rockwell Collins (RTX), where he led the company’s integration with United Technologies. His alma mater, the University of Iowa, saw no surprise in his decision to take on the challenge. “It’s just the kind of person he is,” said Ann McKenna, the university’s engineering dean.
In his first year, Ortberg resolved the Machinists’ strike, secured a $21 billion share sale and implemented significant layoffs to streamline Boeing’s (BA) focus. He also increased production of the 737 Max, working within FAA-imposed caps to prioritize quality. Ortberg expressed optimism about lifting those restrictions soon.
Financially, Boeing (BA) reduced losses significantly, cutting its net loss to $612 million in the second quarter, compared with $1.4 billion the previous year. Ortberg also steered Boeing’s (BA) defense business toward recovery, with no write-offs from fixed-price contracts in the second quarter, after $2.3 billion in losses earlier in 2024.
Analyst George Ferguson from Bloomberg Intelligence highlighted Ortberg’s efforts to revitalize Boeing’s (BA) culture and focus on quality, emphasizing the progress toward improving morale and product standards. John Plueger of Air Lease (AL) also noted that Boeing’s (BA) products are now being delivered on time with fewer issues, reflecting a shift in focus toward ensuring high-quality standards rather than merely meeting regulatory requirements.
Ortberg’s first year has shown promising signs, and analysts are optimistic about Boeing’s (BA) future under his leadership, according to the newspaper report.