Boeing reported a substantial financial loss, with an adjusted loss per share of $5.90, a stark contrast to the expected $2.65. The company's revenue also fell short, recording $15.24 billion against an anticipated $16.21 billion. This marks another challenging period for Boeing, which last posted a profit in 2018. The financial difficulties highlight the various hurdles Boeing faces as it seeks to stabilize its operations and return to profitability.
The financial struggles of Boeing stem from a series of unfortunate events, starting with two fatal crashes involving its bestselling 737 Max planes. These incidents significantly impacted the company's reputation and operations. Additionally, the COVID-19 pandemic had a severe effect on air travel, further exacerbating Boeing's challenges. Manufacturing defects, cost overruns, and a significant incident involving a midair blowout of a door panel on a Max 9 jetliner have compounded the company's woes.
Boeing's production issues have had a ripple effect on its customers. American Airlines, for instance, had to make further cuts to its schedule due to delayed deliveries of new Boeing 787 Dreamliners. The airline remains committed to managing the impact of these delays on its operations.
"We'll be proactively reaching out to our impacted customers to offer alternate travel arrangements and remain committed to mitigating the impact of these Boeing delays while continuing to offer a comprehensive global network." – American Airlines
The company's recent results were further impacted by a nearly two-month-long machinist strike, which halted work on most of Boeing's aircraft and contributed to delivery delays. During this period, Boeing burned through an estimated $3.5 billion in cash in the fourth quarter alone. The strike's end has allowed the company to resume normal operations, but the financial implications remain significant.
In the last three months of 2024, Boeing reported a loss of $3.86 billion, taking nearly $3 billion in charges related to its commercial aircraft unit and its defense and space business. These charges represent ongoing challenges within these sectors as the company works towards recovery.
Despite these setbacks, Boeing's CEO, Kelly Ortberg, expressed optimism about the company's progress in stabilizing its operations. Efforts are underway to address the manufacturing defects and improve delivery timelines. Boeing is also focusing on certifying its Max 7 and Max 10 aircraft as part of its strategic initiatives to regain market confidence.