Boeing CEO says new jet will wait while finances recover

Boeing is putting financial repair ahead of a new jet, a signal that the aircraft maker’s next big product cycle is still some distance away. For everyday investors, that means the near-term story remains execution: building current planes more reliably, improving production and restoring the company’s balance sheet.

CEO Kelly Ortberg told CNBC on Monday that Boeing needs “a couple more years” to get its finances where management wants them before launching another commercial aircraft program. He spoke with CNBC’s Phil LeBeau at the Farnborough International Airshow in the U.K.

A new aircraft program is the formal decision to develop and bring a new plane model to market. Ortberg said Boeing has three conditions to meet before it makes that kind of commitment: the company has to be ready, the technology has to be ready, and there has to be enough market demand.

“First of all, we have to be ready, and part of that is getting our financial house in order, and we’re working on that,” Ortberg told CNBC. “It’s going to take a couple more years to get where we want to be.”

Airlines want Boeing focused on the planes it already sells

Ortberg said airline customers are pushing Boeing to improve the reliability and production of its existing lineup instead of rushing out a new model, according to CNBC. That points to a company still focused on fixing day-to-day operations rather than starting a costly new development race.

The timing also matters because Boeing’s 737 MAX is its best-selling plane family, and any future successor would be central to the company’s long-term commercial aircraft strategy. CNBC reported that Ortberg’s comments suggest Boeing is unlikely to launch a new narrowbody aircraft until later in the decade. A narrowbody jet is a single-aisle plane used heavily on domestic and shorter international routes.

Ortberg returned from retirement to lead Boeing after a series of manufacturing and quality problems, CNBC reported. His comments at Farnborough show that Boeing’s leadership is still prioritizing recovery work before pursuing a new aircraft that could reset its product lineup.

The Airbus problem is still there

Boeing and Airbus dominate the market for large commercial aircraft, according to CNBC. Boeing’s main challenge in the single-aisle category is Airbus’s A320 family, which competes directly with Boeing’s 737 lineup.

CNBC reported that Boeing will probably need a new plane eventually to compete more effectively with the Airbus A320 family and win future airline business. Ortberg’s message was that Boeing is not ready to make that move yet.

For shareholders, the update narrows the near-term focus. Boeing’s next major commercial jet is still on the table, but management is framing it as a decision that depends on repaired finances, mature technology and clear demand from customers.

This story draws on original reporting from CNBC.