Boeing CEO Confident Amid Escalating U.S.-China Trade Tensions, Navigates Delivery Challenges

Boeing CEO Kelly Ortberg addressed the escalating U.S.-China trade tensions on April 23, 2025, expressing confidence that the company's financial recovery and aircraft delivery targets remain on track despite China's recent directive for its airlines to halt deliveries of Boeing aircraft.

The trade dispute intensified when the United States increased tariffs on Chinese exports to 145%, prompting China to retaliate by raising tariffs on U.S. goods to 125%. This escalation has significantly impacted various industries, including aerospace. In response, Chinese airlines have suspended acceptance of Boeing planes, leading to logistical challenges for the manufacturer.

Ortberg highlighted Boeing's adaptability in navigating these challenges. "We remain confident that these developments will not impede Boeing's financial recovery or our aircraft delivery targets," he stated. The company has begun redirecting aircraft originally intended for Chinese airlines to other global customers, demonstrating its flexibility in response to the trade tensions.

Financially, Boeing reported an adjusted loss of 49 cents per share on $19.5 billion in revenue for the first quarter of 2025, surpassing analyst expectations. The company also significantly reduced its cash burn, indicating a positive trajectory in its financial recovery. Following these results, Boeing shares rose by 6.6%.

The suspension of deliveries to China has led to specific operational challenges. For instance, a Boeing 737 MAX jet originally sent to Zhoushan, China, for completion was returned to the U.S., reflecting potential interruptions in aircraft deliveries amid the deepening trade dispute. Despite these challenges, Boeing has been proactive in redirecting aircraft to other markets. Malaysia Airlines, for example, has expressed interest in purchasing Boeing jets that Chinese airlines may decline, viewing this as an opportunity to secure earlier delivery slots amid global delays.

In addition to trade tensions, regulatory reviews have impacted Boeing's operations. Deliveries of Boeing aircraft to China were paused pending a review of batteries powering the onboard cockpit voice recorders (CVR). The review pertains to the installation of new CVRs capable of storing 25 hours of data, up from the previously mandatory two hours. This change was mandated by the U.S. Congress in its FAA reauthorization bill, which became law on May 16, 2024. The Civil Aviation Administration of China (CAAC) has been conducting its own review of these batteries, leading to delivery delays.

Historically, Boeing's relationship with China has experienced fluctuations. After a five-year halt that ended in 2024, Boeing resumed deliveries to Chinese airlines. In December 2023, Boeing delivered a 787 Dreamliner to Juneyao Airlines, marking the first direct delivery to a Chinese customer since 2019. Subsequent deliveries included a 737 MAX 8 to China Southern Airlines in January 2024.

The ongoing trade tensions and resulting disruptions in aircraft deliveries have broader implications for the global aviation industry. Airlines worldwide are facing uncertainties in fleet expansion plans, and manufacturers like Boeing must navigate complex geopolitical landscapes. The situation underscores the interconnectedness of global trade and the potential ripple effects of bilateral disputes on international markets.

Despite the escalating trade tensions and operational challenges, Boeing's proactive strategies and commitment to free trade policies position the company to navigate the current turbulence, maintaining its role as a major U.S. exporter and a key player in the global aviation industry.