Boeing has reported a significant loss in the fourth quarter, amounting to $3.8 billion, as challenges such as a machinists’ strike and various operational issues continued to affect the struggling aircraft manufacturer. This latest setback brings Boeing’s cumulative losses to over $35 billion since 2019, following the tragic crashes of two new Max jets that resulted in the deaths of 346 individuals. Boeing’s total loss for the full year of 2024 reached $11.8 billion.
The figures released by the company align with the advance information shared last week, revealing nearly $3 billion in charges associated with the labor strike, workforce reductions, and difficulties related to several government projects during the period. The loss per share was reported at $5.46, which significantly exceeded Wall Street’s anticipated loss of $3.08 per share, as per data from FactSet.
The fourth quarter concluded a tumultuous year for Boeing, characterized by a strike among machinists responsible for assembling the highly sought-after 737 Max, along with the 777 jet and the 767 cargo plane. This labor disruption halted operations at the company’s Renton and Everett, Washington facilities, critically impairing Boeing’s ability to deliver jets. After more than seven weeks of strike action, work resumed once Boeing agreed to enhance pay and benefits for workers.
Boeing reiterated several points from its previous report, indicating it had incurred charges totaling $1.1 billion connected to the 777 and 767 programs during the fourth quarter. Additionally, the company faced an extra $1.7 billion in charges linked to various government programs, which included a military refueling tanker and the replacement jets for Air Force One.
The revenue for the fourth quarter was reported at $15.2 billion, falling short of the revised analyst expectations of $15.7 billion, according to FactSet. The company’s annual revenue reached $66.5 billion, reflecting a 14% decrease compared to 2023 figures. Earlier reports indicated that Boeing delivered 348 jetliners last year, which is over one-third fewer than the 528 jets completed for airlines and leasing companies in the previous year, and notably less than half of the total deliveries made by Airbus.
Deliveries represent a crucial revenue stream for aircraft manufacturers, as customers often make substantial payments upon the completion of their orders. A majority of the planes delivered by Boeing were 737 Max jets, highlighting the importance of this flagship model in both the company’s successes and its ongoing challenges.
Boeing had initially planned to increase production levels in 2024; however, plans changed following an incident where a panel identified as a door plug detached from a 737 Max shortly after takeoff from Portland, Oregon, in early January. Following the incident involving an Alaska Airlines flight, the Federal Aviation Administration imposed a cap on 737 Max production until Boeing could demonstrate to federal regulators that it had adequately addressed existing quality and safety concerns.
The repercussions on the company’s finances and reputation negatively impacted new aircraft sales, as Boeing went without any 737 Max orders for a minimum of two months. This left Boeing with a significant shortfall compared to Airbus regarding total net orders for commercial aircraft, a metric that includes cancellations. As trading commenced, Boeing’s shares, headquartered in Arlington, Virginia, saw a slight increase of less than 1%.
