After years of turmoil marked by safety scandals, production halts and leadership shake-ups, Boeing Co. is showing tentative signs of recovery under its new chief executive, Kelly Ortberg. Appointed in late 2024 amid intense scrutiny, Ortberg has prioritized transparency and operational discipline, earning praise from employees and analysts alike for his hands-on approach. “He’s showing up,” one insider told CNBC, capturing the sentiment that Ortberg is actively engaging with teams to rebuild trust.

This shift comes at a critical juncture as Boeing prepares to report second-quarter earnings, with Wall Street anticipating a significant reduction in losses—potentially halved from the previous year. The focus is on stabilizing commercial airplane deliveries, which have been plagued by supply-chain disruptions and regulatory hurdles. Recent data indicates a rebound, with Boeing delivering 150 commercial planes in the second quarter of 2025, a 63% increase year-over-year, including strong numbers for the 737 Max and 787 Dreamliner models.

Navigating Commercial Aviation’s Turbulent Skies: Ortberg’s Strategy for Deliveries and Production Ramp-Up

Ortberg’s tenure has emphasized ramping up production rates, particularly for the beleaguered 737 Max, which faced global grounding after fatal crashes in 2018 and 2019. In May 2025, he announced the resumption of deliveries to China, a key market stalled by trade tensions, projecting a boost in output to meet pent-up demand from airlines. As reported by CNBC, this move is expected to alleviate inventory backlogs and improve cash flow, though challenges like parts shortages persist.

Beyond commercial jets, Boeing’s defense, space and security division—representing about a third of revenue—has been a mixed bag. The unit delivered 36 units in the second quarter, but it grapples with cost overruns on fixed-price contracts, including the KC-46 tanker and the delayed Air Force One program. Ortberg has sought external expertise, notably collaborating with Elon Musk on the Air Force One modifications, as highlighted in posts on X (formerly Twitter) where users noted Musk’s role in expediting requirements to cut delays and overruns exceeding $2 billion.

Leadership Overhaul and Cultural Shifts: Appointing Insiders to Steer Defense Recovery

To address these issues, Ortberg orchestrated a leadership transition in July 2025, appointing veteran insider Stephen Parker as president and CEO of the defense unit. According to Reuters, this move is part of a broader overhaul aimed at boosting production efficiency and stabilizing finances amid geopolitical tensions driving demand for military hardware.

Analysts from Aviation Week Network suggest Ortberg’s strategy includes exploring new ventures, such as the MQ-28 Ghost Bat drone program, where recent trials demonstrated interoperability with the E-7A Wedgetail, potentially opening doors to international contracts. Yet, the defense business faces headwinds from rising U.S. costs and competition, echoing broader industry strains seen in reports of Lockheed Martin’s revenue drops.

Sustaining Momentum Amid Ongoing Challenges: Financial Projections and Employee Morale

Financially, Boeing’s path forward hinges on narrowing losses, with projections from TheStreet indicating improved stock targets ahead of earnings. Ortberg has also tackled cultural issues, distancing the company from past diversity initiatives blamed by some for operational lapses, as discussed in X posts reflecting public sentiment on accountability.

Employee morale is on the upswing, with insiders noting better visibility into decision-making. However, sustaining this requires navigating labor negotiations and FAA oversight. As Forbes outlined, the first half of 2025 showed commercial progress, but defense challenges could temper gains.

Future Horizons: Innovation and Global Partnerships in a Competitive Arena

Looking ahead, Ortberg eyes long-term growth through partnerships, such as a memorandum with Angola’s transport ministry for aviation development, per Boeing’s newsroom. This aligns with efforts to diversify amid Airbus rivalry.

Ultimately, while Ortberg’s leadership has injected stability, Boeing’s recovery remains fragile. Industry watchers will scrutinize upcoming earnings for evidence that the aerospace giant can maintain its trajectory, balancing commercial rebounds with defense resilience in an era of heightened global demands.