Boeing has appointed Kelly Ortberg as its new President and CEO, starting August 8, 2024. Ortberg, a seasoned leader in the aerospace sector, will take over from Dave Calhoun, who has been CEO since January 2020 and is retiring this year. "After a comprehensive search, we believe Kelly has the expertise needed to guide Boeing into its next phase," stated Steven Mollenkopf, Chair of Boeing’s Board of Directors. Ortberg will also join the company’s Board of Directors.

This leadership change arrives as Boeing grapples with significant challenges. The company recently reported a $1.4 billion loss for the quarter. Much of this loss stems from Boeing's Defense, Space, and Security unit, which has been burdened by cost overruns on fixed-price contracts. These contracts have high margins but are also vulnerable to inflationary pressures that have affected U.S. corporate earnings in recent years. Losses in this unit alone amounted to billions in 2022 and 2023.

Moreover, Boeing's commercial aircraft division has faced setbacks, including an incident in January where a cabin panel on a 737 MAX 9 detached mid-flight. This led to a slowdown in production and increased regulatory scrutiny. The U.S. aviation regulator has limited 737 MAX production to 38 jets per month, though actual output has occasionally been lower. Consequently, Boeing delivered only 92 aircraft in the second quarter of this year, a 32% decrease from the previous year.

In response to these issues, Boeing plans to shift its strategy away from high-risk, fixed-price contracts. The company’s CFO, Brian West, noted that Boeing would "burn rather than generate cash in 2024" due to reduced jet deliveries compared to last year.

Ortberg's Commitment

Kelly Ortberg, who brings over 35 years of aerospace experience, is determined to navigate Boeing through these turbulent times. "I am honored to lead this historic company," Ortberg said. "Boeing has a legacy of leadership and innovation, and I am committed to working with our dedicated team of over 170,000 employees to uphold this tradition with a focus on safety and quality. We have a lot of work ahead, and I am eager to begin."

Ortberg's career includes significant roles at Rockwell Collins, United Technologies, and RTX, along with service on boards such as the Aerospace Industries Association (AIA) and Aptiv PLC. His background in managing complex engineering and manufacturing operations will be crucial for Boeing’s recovery efforts.

As a leading global aerospace company, Boeing designs, manufactures, and services commercial airplanes, defense products, and space systems for clients in more than 150 countries. The company is a major U.S. exporter and aims to advance economic opportunity, sustainability, and community impact through its global supplier network.

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