Dreamliner hits Boeing's results

The 787 is expected to make its first flight later this year

Costs linked to the 787 Dreamliner project, as well as charges for a delayed military project, have hit Boeing's three-month earnings.

The aircraft manufacturer reported a 19% fall in net profit to $852m (£427m) in the three months to the end of June.

It had already warned there would be a $248m charge for delays in delivering six military aircraft to Australia.

Boeing said it was in the final stages of assembling its first Dreamliner to begin test flights.

It expects to deliver the first 787s to airlines by the end of September 2009.

Despite the worse-than-expected profits in the second quarter, Boeing maintained its forecasts for profits in the full year.

It is hoping that high oil prices will encourage airlines to replace ageing aircraft with new, more fuel-efficient models.