Boeing Reports $4B Q4 Loss Amid Strikes and Safety Woes

Boeing has warned of a likely $4 billion loss for the fourth quarter of 2024, adding to the company’s mounting troubles. The aerospace giant, which hasn’t posted an annual profit since 2018, also expects to take a $1.1 billion charge on its 777X and 767 programs due to a crippling labor strike and new labor agreements.

The company projected a fourth-quarter loss of $5.46 per share, with revenues falling to $15.2 billion, below analyst expectations. Boeing also reported burning through $3.5 billion in cash during the quarter while raising over $20 billion to improve liquidity.

The past year has been tumultuous for Boeing, which faced a midair accident in January 2024, further compounding the ongoing fallout from two fatal crashes in 2018 and 2019. The safety incident, involving a door plug blowing out midair, led to increased federal scrutiny and a slowdown in aircraft deliveries.

Additionally, a nearly two-month strike by machinists, which began in September 2024, shut down much of Boeing’s commercial aircraft production. The strike, centered in the Puget Sound area, ended in November with a new contract for the workers.

Boeing’s commercial airplane unit is expected to report $4.8 billion in revenue with a negative operating margin of nearly 44%. Furthermore, the company faces $1.7 billion in pretax charges for its defense unit, including the KC-46A tanker and the long-delayed 747s that are intended for the new Air Force One program. Boeing also faces challenges in its space operations.

Despite these challenges, CEO Kelly Ortberg highlighted steps taken to stabilize the business, including securing agreements with labor unions and conducting a successful capital raise. However, Boeing’s road to recovery remains uncertain as it grapples with ongoing operational and financial struggles.

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Sources: AirGuide Business airguide.info, bing.com, cnbc.com