As its next CEO, Boeing chose a seasoned aerospace industry veteran to lead a business beset by production, legal and regulatory issues.

Effective Aug. 8, David Calhoun, 67, will step down as CEO and be replaced by Robert "Kelly" Ortberg, 64, the former CEO of aerospace supplier Rockwell Collins. announced on Wednesday.

In addition to reporting a loss of about US$1.4 billion due to a drop-in revenue in the second quarter, Boeing also revealed the appointment of a new CEO. Both Boeing's defense and commercial aircraft divisions saw financial losses, and losses were higher and earnings were lower than Wall Street expected.

The disappointing results coincide with a turbulent period for Boeing. The business agreed to plead guilty to fraud in connection with two Max crashes, which resulted in 346 deaths. The Federal Aviation Administration has stepped up oversight of businesses in the wake of accidents like the exploding panel of an Alaska Airlines plane. This is retaliating against Lakers' claims that production shortcuts compromise worker safety.

Production has been hampered by supply chain issues that the business is addressing, which it plans to address in part by repurchasing a prime contractor, Spirit AeroSystems. It is still trying to convince regulators to allow extended versions of two of its Boeing 777 aircraft and two new Max variants. It also has to decide when to design a new single-aisle airplane to replace the MAX, a choice that could cost billions of dollars.

On August 8, Ortberg will take over as president and CEO of Boeing. It is only recently that he has become a front runner. Other senior Boeing executives apparently considered for the position included Stephanie Pope, who just took over the leadership of the commercial aircraft division, and former Boeing executive Patrick Shanahan, who is now the company's top executive. CEO of major supplier, Spirit Aero Systems.

Ortberg was selected after a "thorough and extensive search process," according to chairman Steven Molinekoff, and "has the right skills and experience to lead Boeing into its next chapter."

According to Mollenkopf, Ortberg has a track record of successfully managing complex technical and manufacturing businesses.

Ortberg's mandatory retirement age of 65 has been waived by the firm, according to a Boeing representative. In 2021, just days after Calhoun turned sixty-four, Boeing did the same for him.

Arlington, Virginia-based Boeing reported a loss of US$1.44 billion for the second quarter, down from a loss of US$149 million a year earlier.

Excluding special items, the loss came to $2.90 per share. A FactSet survey indicated that analysts were expecting a loss of $1.90 per share.

Revenue fell 15 percent to US$16.87 billion, missing Wall Street's average estimate of US$17.35 billion.

The commercial aircraft segment suffered an operating loss of US$715 million and a 32 percent drop in sales as Boeing delivered 92 passenger planes to airlines, up from 136 last year.

Shortly after the Alaska Airlines incident, the FAA banned Boeing's production of Max jetliners. Even so, as the company works to improve its manufacturing processes, Boeing has not even reached the FAA's limits. By the end of the year, the business plans to increase production of Max to 38 units per month, it said on Wednesday.

Boeing received $244 million in fines it agreed to pay to the Department of Justice in exchange for entering a criminal plea of ​​fraud related to the development of the Max. Many families of those killed in the two Maxx crashes oppose the arrangement, and a federal judge in Texas will soon decide whether to allow it.

Boeing's defense and space unit lost $913 million due to a $1 billion blow to four fixed-price government contracts, including the construction of two new Air Force One presidential jets. The small services company generated $870 million in revenue.

In premarket trade, Boeing shares rose 2%.