Boeing Appoints New CEO After Losses Triple

The decision comes as Boeing faces increased scrutiny over the safety and quality of its planes, which has hindered its ability to produce enough aircraft to return to profitability. Ortberg, who holds a mechanical engineering degree, emphasized the need for improvements at Boeing. 

Boeing has struggled financially, not posting a profitable year since 2019. The company’s cumulative core operating losses since then amount to $33.3 billion, with the latest quarterly loss significantly exceeding analysts’ forecasts. Boeing’s path to profitability remains uncertain until it addresses regulatory concerns regarding the safety and quality of its jets.

The company’s troubles were increased by two fatal 737 Max crashes in October 2018 and March 2019, which claimed 346 lives and were attributed to a design flaw. The resulting investigations and corrective measures cost Boeing over $20 billion and led to a 20-month grounding of the 737 Max. Further scrutiny followed a January incident where a 737 Max plane’s door plug blew off shortly after takeoff.

Ortberg’s background in aerospace includes starting his career in 1983 as an engineer at Texas Instruments before joining Rockwell Collins in 1987. He served as Rockwell Collins’ CEO from 2013 until its integration with United Technologies and RTX, retiring from RTX in 2021. Ortberg has held leadership roles within the Aerospace Industries Association and currently serves on the boards of RTX and Aptiv PLC.

"I'm extremely honored and humbled to join this iconic company," said Ortberg. "Boeing has a tremendous and rich history as a leader and pioneer in our industry, and I'm committed to working together with the more than 170,000 dedicated employees of the company to continue that tradition, with safety and quality at the forefront. There is much work to be done, and I'm looking forward to getting started."