Boeing is looking ahead for a possible replacement for its 737 MAX in the next decade.
The company has been working with NASA on an aircraft concept that reduces drag and fuel burn that could fly later this decade.
With improved engine technology, this unnamed concept could be 30% more efficient than the current 737 MAX and the Airbus A320neo.
Related to this, NASA has selected Boeing and its industry team to lead the development and flight testing of a full-scale Transonic Truss-Braced Wing (TTBW) demonstrator airplane.
The technologies demonstrated and tested as part of the Sustainable Flight Demonstrator (SFD) program will inform future designs and could lead to breakthrough aerodynamics and fuel efficiency gains.
When combined with expected advancements in propulsion systems, materials and systems architecture, a single-aisle airplane with a TTBW configuration could reduce fuel consumption and emissions up to 30% relative to today’s most efficient single-aisle airplanes, depending on the mission. The SFD program aims to advance the civil aviation industry’s commitment to reaching net zero carbon emissions by 2050, as well as the goals set forth in the White House’s U.S. Aviation Climate Action Plan.
NASA has selected Boeing and its industry team to lead the development and flight testing of a full-scale Transonic Truss-Braced Wing (TTBW) demonstrator airplane.
Ultrathin wings braced by struts with larger spans and higher-aspect ratios could eventually accommodate advanced propulsion systems that are limited by a lack of underwing space in today’s low-wing airplane configurations. For the demonstrator vehicle, Boeing will use elements from existing vehicles and integrate them with all-new components.
NASA’s funding through the SFD Space Act Agreement totals $425 million. The SFD program will also leverage up to $725 million in funding by Boeing and its industry partners to shape the demonstrator program and meet the resource needs required. Separately, Boeing’s previous internal investments for recent phases of sustainable aviation research total $110 million.
The TTBW airframe concept is the result of more than a decade of development supported by NASA, Boeing and industry investments. Under previous NASA programs including the agency’s Subsonic Ultra Green Aircraft Research program, Boeing conducted extensive wind tunnel testing and digital modeling to advance the design of the TTBW. Early conceptual studies started under NASA’s Environmentally Responsible Aviation program.
Southwest Airlines Company today reported its fourth quarter and full year 2022 financial results:
Fourth quarter net loss of $220 million, or $0.37 loss per diluted share
Fourth quarter net loss, excluding special items1, of $226 million, or $0.38 loss per diluted share
Full year net income of $539 million, or $0.87 per diluted share
Full year net income, excluding special items, of $723 million, or $1.16 per diluted share
Record fourth quarter and full year operating revenues of $6.2 billion and $23.8 billion, respectively
Liquidity2 of $13.3 billion, well in excess of debt outstanding of $8.1 billion
Bob Jordan, President and Chief Executive Officer, stated, “Due to the operational disruptions in late December, which resulted in more than 16,700 flight cancellations, we incurred a fourth quarter pre-tax negative impact of approximately $800 million (or approximately $620 million on an after-tax basis), which resulted in a fourth quarter 2022 net loss. Despite the negative financial impacts in first quarter 2022 due to the Omicron variant and in fourth quarter 2022 due to the operational disruptions, we generated full year 2022 net income, excluding special items, of $723 million.
“With regard to the operational disruptions, I am deeply sorry for the impact to our Employees and Customers. We have swiftly taken steps to bolster our operational resilience and are undergoing a detailed review of the December events. In addition, our Board of Directors has established an Operations Review Committee that is working with the Company’s Management to help oversee the Company’s response. As part of our efforts, we are also conducting a third-party review of the December events and are reexamining the priority of technology and other investments planned in 2023.
“Based on current revenue and cost trends, we currently expect a first quarter 2023 net loss. However, we are encouraged by current booking trends in March 2023. Our 2023 plan continues to support solid profits with year-over-year margin expansion for full year 2023. We remain intent on achieving the long-term financial goals outlined at our December 2022 Investor Day. We also intend to regain our 51-year reputation for operational excellence. As ever, I am grateful for our Employees and their resilience and steadfast focus on Safety, Customer Service, and Teamwork. They remain the heart and soul of Southwest Airlines.”
Capacity, Fleet, and Capital Spending:
The Company’s full year 2022 capacity decreased 5.6 percent, compared with full year 2019, which was roughly one point lower than previous guidance of down 4.5 percent, due to flight cancellations from the December 2022 operational disruptions. Prior to the operational disruptions, the Company expected its 2023 capacity to increase approximately 15 percent, year-over-year. The Company’s 2023 capacity growth plans currently remain unchanged. However, as a result of lower capacity in 2022, the Company’s 2023 capacity is expected to increase in the range of 16 percent to 17 percent, year-over-year. As previously indicated, nearly all planned 2023 capacity additions will go to restoring the network and adding breadth and depth in existing Southwest markets.
The Company received 33 Boeing 737-8 aircraft during fourth quarter 2022, including two additional -8 aircraft deliveries than previously planned, for a total of 68 -8 aircraft deliveries in 2022, compared with previous guidance of 66. The Company ended 2022 with 770 aircraft, which reflects 26 -700 aircraft retirements, including five retirements in fourth quarter. Due to Boeing’s supply chain challenges and the current status of the -7 certification, the Company did not receive all 114 contractually scheduled 737 deliveries in 2022. The Company expects the remaining 46 contractual undelivered aircraft to shift into future years. Based on continued discussions with Boeing regarding the pace of expected deliveries, the Company continues to estimate it will receive approximately 100 737 aircraft deliveries in 2023, which differs from its contractual order book displayed in the table below. During first quarter 2023, the Company expects to receive approximately 30 -8 aircraft deliveries. The Company continues to expect to retire 27 -700 aircraft in 2023, including five -700 retirements in first quarter. As a result of the two additional -8 deliveries in fourth quarter 2022, the Company now expects to end 2023 with 843 aircraft, compared with its previous guidance of 841 aircraft.
The Company’s full year 2022 capital expenditures were $3.9 billion, relatively in line with the Company’s guidance of $4.0 billion. The Company continues to estimate its 2023 capital spending to be in the range of $4.0 billion to $4.5 billion, which assumes approximately 100 737 aircraft deliveries in 2023. The Company’s 2023 capital spending guidance continues to include approximately $1.2 billion in non-aircraft capital spending. Including both capital spending and operating expense budgets, the Company currently expects to spend approximately $1.3 billion in 2023 on technology investments, upgrades, and system maintenance.
Since the Company’s previous Investor Day disclosure on December 7, 2022, the Company converted four 2023 -7 firm orders to -8 firm orders in fourth quarter 2022. Additionally, in January 2023, the Company exercised 10 -7 options for delivery in 2024. The following tables provide further information regarding the Company’s contractual order book and compare its contractual order book as of January 26, 2023, with its previous order book as of December 7, 2022. For purposes of the delivery schedule below, the Company has included the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 contractual commitments. Given current supply chain and aircraft delivery delays, the Company will continue working with Boeing to solidify future delivery dates.
Current 737 Contractual Order Book as of January 26, 2023:
The Boeing Company
-7 Firm Orders
-8 Firm Orders
-7 or -8 Options
Total
2023
31
105
—
136
(c)
2024
51
—
35
86
2025
30
—
56
86
2026
30
15
40
85
2027
15
15
6
36
2028
15
15
—
30
2029
20
30
—
50
2030
—
55
—
55
2031
—
—
—
—
192
(a)
235
(b)
137
564
(a) The delivery timing for the -7 is dependent on the FAA issuing required certifications and approvals to Boeing and the Company. The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct.
(b) The Company has flexibility to designate firm orders or options as -7s or -8s, upon written advance notification as stated in the contract.
(c) The Company has included the remaining 46 of its 2022 contractual undelivered aircraft (14 -7s and 32 -8s) within its 2023 contractual commitments. Due to Boeing’s supply chain challenges and the current status of the -7 certification, the Company currently estimates approximately 100 737 aircraft deliveries in 2023. The 2023 contractual detail is as follows:
The Boeing Company
-7 Firm Orders
-8 Firm Orders
Total
2022 Contractual Deliveries Remaining
14
32
46
2023 Contractual Deliveries
17
73
90
2023 Contractual Total
31
105
136
Previous 737 Contractual Order Book as of December 7, 2022 (a):
The Boeing Company
-7 Firm Orders
-8 Firm Orders
-7 or -8 Options
Total
2022
14
100
—
114
2023
21
69
—
90
2024
41
—
45
86
2025
30
—
56
86
2026
30
15
40
85
2027
15
15
6
36
2028
15
15
—
30
2029
20
30
—
50
2030
—
55
—
55
2031
—
—
—
—
186
299
147
632
(a) The ‘Previous 737 Contractual Order Book’ is for reference and comparative purposes only. It should no longer be relied upon. See ‘Current 737 Contractual Order Book’ for the Company’s current aircraft order book.
Top Copyright Photo: Southwest Airlines Boeing 737-8 MAX 8 N1809U (msn 60188) PAE (Nick Dean). Image: 958199.
Boeing issued this financial report for the fourth quarter and full-year 2022:
Fourth Quarter 2022
Generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP); cash and marketable securities of $17.2 billion
Certification efforts continue on 737-7 and 737-10
Delivered 152 commercial airplanes and recorded 376 net orders
Full Year 2022
Generated $3.5 billion of operating cash flow and $2.3 billion of free cash flow (non-GAAP)
Delivered 480 commercial airplanes and recorded 808 net orders
Total company backlog grew to $404 billion; including over 4,500 commercial airplanes
Outlook for 2023
Reaffirming guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion free cash flow (non-GAAP)
Table 1. Summary Financial Results
Fourth Quarter
Full Year
(Dollars in Millions, except per share data)
2022
2021
Change
2022
2021
Change
Revenues
$19,980
$14,793
35 %
$66,608
$62,286
7 %
GAAP
Loss From Operations
($353)
($4,171)
NM
($3,547)
($2,902)
NM
Operating Margin
(1.8)
%
(28.2)
%
NM
(5.3)
%
(4.7)
%
NM
Net Loss
($663)
($4,164)
NM
($5,053)
($4,290)
NM
Loss Per Share
($1.06)
($7.02)
NM
($8.30)
($7.15)
NM
Operating Cash Flow
$3,457
$716
383 %
$3,512
($3,416)
NM
Non-GAAP*
Core Operating Loss
($650)
($4,536)
NM
($4,690)
($4,075)
NM
Core Operating Margin
(3.3)
%
(30.7)
%
NM
(7.0)
%
(6.5)
%
NM
Core Loss Per Share
($1.75)
($7.69)
NM
($11.06)
($9.44)
NM
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
The Boeing Company recorded fourth-quarter revenue of $20.0 billion, GAAP loss per share of ($1.06), and core loss per share (non-GAAP)* of ($1.75) (Table 1). Boeing also generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP). Results improved on commercial volume and performance.
“We had a solid fourth quarter, and 2022 proved to be an important year in our recovery,” said Dave Calhoun, Boeing President and Chief Executive Officer. “Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond. We are investing in our business, innovating and prioritizing safety, quality and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength.”
Table 2. Cash Flow
Fourth Quarter
Full Year
(Millions)
2022
2021
2022
2021
Operating Cash Flow
$3,457
$716
$3,512
($3,416)
Less Additions to Property, Plant & Equipment
($326)
($222)
($1,222)
($980)
Free Cash Flow*
$3,131
$494
$2,290
($4,396)
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
Operating cash flow improved to $3.5 billion in the quarter, reflecting higher commercial deliveries and timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances
Quarter-End
(Billions)
Q4 22
Q3 22
Cash
$14.6
$13.5
Marketable Securities1
$2.6
$0.8
Total
$17.2
$14.3
Consolidated Debt
$57.0
$57.2
1Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.”
Cash and investments in marketable securities increased to $17.2 billion, compared to $14.3 billion at the beginning of the quarter, primarily driven by cash from operations (Table 3). The company has access to credit facilities of $12.0 billion, which remain undrawn.
Total company backlog at quarter-end was $404 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes
Fourth Quarter
Full Year
(Dollars in Millions)
2022
2021
Change
2022
2021
Change
Commercial Airplanes Deliveries
152
99
54 %
480
340
41 %
Revenues
$9,224
$4,750
94 %
$25,867
$19,493
33 %
Loss from Operations
($626)
($4,454)
NM
($2,370)
($6,475)
NM
Operating Margin
(6.8)
%
(93.8)
%
NM
(9.2)
%
(33.2)
%
NM
Commercial Airplanes fourth-quarter revenue increased to $9.2 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations (Table 4). Operating margin of (6.8) percent also reflects abnormal costs and period expenses, including research and development.
The 737 program is stabilizing production rate at 31 per month with plans to ramp production to approximately 50 per month in the 2025/2026 timeframe. Additionally, the 787 program continues at a low production rate with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.
During the quarter, the company secured net orders for 376 aircraft, including an order from United Airlines for 100 737 MAX and 100 787 airplanes. Commercial Airplanes delivered 152 airplanes during the quarter and backlog included over 4,500 airplanes valued at $330 billion.
Top Copyright Photo: Boeing 737-10 MAX 10 SSWL N27751 (msn 66122) BFI (Brian Worthington). Image: 959419.
Boeing will present a live webcast of the ceremony marking the delivery of the final 747 to Atlas Air on January 31, 2023 at 4 p.m. Eastern (1 p.m. Pacific).
Thousands of people – including current and former employees as well as customers and suppliers – will celebrate the final delivery in the factory constructed to produce the iconic widebody with the distinctive hump.
The final airplane, a 747-8 Freighter, is the 1,574th manufactured during 55 years of production.
While the event is not open to the public, Boeing will make this live webcast available globally at this link.
After the event concludes, a video recording will be available on Boeing.com.
Video:
Top Copyright Photo: Apexlogistics (Atlas Air) Boeing 747-8F N863GT (msn 67150) PAE (Nick Dean). Image: 959868.
Below Copyright Photo: Atlas Air Boeing 747-8F N863GT (msn 67150) PAE (Nick Dean). Image: 959868.
Emirates has successfully completed the ground engine testing for one of its GE90 engines on a Boeing 777-300ER using 100% Sustainable Aviation Fuel (SAF). The objective of the ground testing and analysis is to demonstrate the capability of the GE90 engine to run on the specially blended 100% SAF without affecting its performance, requiring no modifications to the aircraft systems, or special maintenance procedures on the Boeing 777-300ER or GE90 engine to operate. SAF reduces carbon emissions over the fuel’s life cycle by up to 80%.
The ground test results will now pave the way for the airline’s first experimental test flight using 100% SAF in one engine, which is due for take-off this week. The testing activities involved running one engine on 100% SAF and the other on conventional jet fuel to better analyse the fuel system´s behaviour and performance under each fuel type, compare specific outputs of each engine, and ensure seamless operation of the aircraft’s engine and airframe fuel systems during the planned test flight.
During the ground testing at the state-of-the-art Emirates Engineering Centre in Dubai, the aircraft first went through its standard pre-inspection activities. After that, the stationary operating testing began by first running the Honeywell 331-500 auxiliary power unit (APU) on 100% SAF. The APU was then put under full load with SAF to start the engines. The left engine was exercised through its full power range, utilising the same settings that will be used for the experimental flight. This included idle, ‘take-off’ and ‘climb settings’ at full flight profile durations, running at maximum speed and intensity. Engines were then run at ‘cruise’ settings for 15 minutes. After the simulation ended, the engines were cooled down. Fuels were isolated in separate fuel tanks to maintain segregation of test fuels. Upon completion of the ground test, engine data was downloaded for review, comparison, and analysis.
Emirates has been working with its partners GE Aerospace, Boeing, Honeywell, Neste and Virent Inc., a subsidiary of Marathon Petroleum Corp throughout 2022 on SAF fuel blend testing. The partners have developed a blend with the same qualities and performance characteristics of conventional jet fuel and have collaborated on the technical analysis and operational requirements surrounding ground testing and experimental flight activities. The results of this initiative will provide additional data and research around synthetic fuel blend components and biofuels, supporting standardization and future approval of 100% drop-in SAF. Following the successful trial on one engine, Emirates will then continue to develop these initiatives with the engine airframe manufacturers as well as SAF providers with the goal of certifying these blends for commercial use. Currently, SAF is approved for use in blends of up to 50% with conventional jet fuel.
Emirates has long been a supporter of industry and government efforts to encourage the development of the SAF industry, and regularly participates in initiatives to contribute to SAF deployment. Its first flight powered by SAF blended with jet fuel was in 2017, operating from Chicago O’Hare airport on a Boeing 777. Emirates received its first A380 powered by SAF in December 2020, and uplifted 32 tonnes of SAF for its flights from Stockholm earlier that year, with the support of Swedavia’s Biofuel Incentive Programme. Flights from Oslo have also begun operating on SAF.
Emirates is on the Steering Committee of the World Economic Forum’s (WEF) Clean Skies for Tomorrow initiative, which seeks to promote SAF deployment worldwide. The airline has also contributed to the UAE government’s work on a SAF roadmap and the WEF-supported Power-to-Liquids Roadmap for the UAE.
Air India is on the verge on making a major fleet overhaul announcement on January 27 under the Tata Group.
According to Reuters, the combined deral with Airbus and Boeing includes a total of 425 single-aisle jets including 235 Airbus A320neo-family aircraft as well as 190 Boeing 737 MAX aircraft.
The deal is also expected to include up to 70 widebody long-haul aircraft including up to 40 Airbus A350s as well as 20 Boeing 787s and 10 Boeing 777Xs.
Ryanair has started to add Aviation Partners Boeing Split Scimitar winglets to its over 400 Boeing 737-800 fleet. EI-DLY is the first to get the retrofit.
Ryanair made this announcement:
EI-DLY is the first Boeing 737-800.
Following a $175 million agreement with Aviation Partners Boeing (APB), Ryanair on January 23 installed Split Scimitar Winglets to the first of over 400 of its Boeing 737-800 Next Generation aircraft. This modification will improve aircraft fuel efficiency by up to 1.5%, reducing Ryanair’s annual fuel consumption by 65 million liters and carbon emissions by 165,000 tons.
As Ryanair grows to carry 225 million passengers by FY26, this initiative will further the airline’s target of net-zero by 2050.
Ghana Airlines, the new national airline of Ghana, is targeting the third quarter of this year in order to commence operations.
Ashanti Airlines won the tender bidding contest and will operate the flights of the new flag carrier.
Concept image: Boeing.
Ghana Airlines is being funded by the Zotus Group and will commence operations on domestic and regional routes, including unspecified European routes (probably London).
Ryanair’s CEO Michael O’Leary has said he was hopeful of receiving 40 to 45 of 51 Boeing MAX aircraft due for delivery by the summer season, up from a previous forecast of 40 according to Reuters.
Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) EI-HGL (msn 65081) STN (Antony J. Best). Image: 959901.
