Boeing Co. appointed Kelly Ortberg as its next next chief executive officer, entrusting a retired veteran of the aviation industry with one of the most complex turnaround challenges in corporate America.
The US planemaker made the announcement as it reported a steep loss in the second quarter. Ortberg, 64, is an engineer by training who rose through the ranks at Rockwell Collins, an aviation supplier that’s now part of RTX Corp. He will take up his role on August 8.
The shares rose as investors welcomed that Boeing had finally settled months of uncertainty after current CEO Dave Calhoun announced he would step down in March. The planemaker is working to placate frustrated airlines and win back the trust of US regulators and the flying public after a near-catastrophe in January was linked to a breakdown in quality controls in its 737 factory outside of Seattle.
“Kelly is an experienced leader who is deeply respected in the aerospace industry,” said Boeing Chairman Steve Mollenkopf, who led the search for the new CEO.
Ortberg will take over a company that’s seen its finances badly dented from the fallout of the January accident. The company said on Wednesday that it burned through $4.33 billion in cash, in line with analyst expectations. That’s after a similar outflow in the first three months, as Boeing slowed down output of its commercial jet factories.
Boeing’s defense and space division suffered its worst quarter since mid-2023 as costs ballooned to convert a pair of Boeing 747 jumbo jets into the next presidential Air Force One fleet. The company said it recorded $1 billion of losses on fixed-price contracts, including a $391 million loss on the KC-46 tanker program.
Calhoun will continue to serve as special adviser until March next year, Boeing said.
