On Tuesday, shares of Boeing (BA.US) opened higher and were trading up nearly 5% at the time of writing. The company released its second-quarter earnings report, revealing revenue of $24.6 billion, an 8.4% increase year-over-year and exceeding market expectations by $330 million.

Driven by sustained strong demand for its aircraft, Boeing generated better-than-expected cash flow in the second quarter. Its free cash flow reached $631 million, beating analysts' forecast of a $331 million net outflow. The company attributed the performance primarily to increased commercial airplane deliveries and favorable working capital changes during the year.

As of the end of the quarter, Boeing's total backlog of orders climbed to a record $715 billion. However, this positive cash surprise was tempered by an additional $280 million in charges on the Air Force One program, which is already years behind schedule and billions over budget. Boeing stated that the latest cost overrun on the presidential 747 jumbo jet project stemmed from deploying additional engineering and quality personnel to support production, as well as investments related to airworthiness certification.