The ailing aircraft manufacturer Boeing reported a $3.8 billion deficit for the fourth quarter on Tuesday due to a strike by machinists and other issues.
Since 2019, Boeing has lost almost $35 billion as a result of the 346 fatalities caused by the crashes of two then-new Max aircraft. During 2024, Boeing recorded a $11.8 billion loss.
The figures revealed by Boeing are consistent with the company’s pre-report from last week, which included charges of about $3 billion for the period resulting from the work slowdown, job losses, and issues with many government programs.
According to the statistics firm FactSet, Boeing’s loss per share was $5.46, significantly higher than the $3.08 loss that Wall Street analysts had anticipated.
Boeing’s difficult year comes to a close in the fourth quarter. Production at the Renton and Everett, Washington, plants that build the best-selling 737 Max, 777 jet, and 767 cargo plane was halted due to a strike by the machinists, which also affected Boeing’s capacity to deliver.
After over seven weeks, the corporation agreed to pay increases and better benefits, which put an end to the strike.
The business restated a lot of its findings from last week’s announcement, including the $1.1 billion in charges it incurred in the fourth quarter for the 777 and 767 programs. Boeing was charged an additional $1.7 billion for a variety of federal initiatives, including as Air Force One replacement jets and a military refueling tanker.
According to FactSet, Boeing’s fourth-quarter revenue of $15.2 billion fell short of analysts’ revised estimate of $15.7 billion. Revenue for the entire year was $66.5 billion, which was $14 less than in 2023.
Boeing announced earlier this month that it delivered 348 jetliners last year, which is less than half of the quantity that Airbus delivered last year and more than a third less than the 528 it completed for airlines and leasing companies in 2023.
Since customers usually pay a significant amount of the purchase price when their orders are fulfilled, deliveries are a significant source of revenue for aircraft manufacturers.
A reminder of how crucial Boeing’s best-selling airline model has been to the company’s successes and struggles is the fact that more than three-quarters of the aircraft it provided were 737 Max aircraft.
Before a door plug panel blew off a 737 Max shortly after takeoff from Portland in early January, the business had planned to increase manufacturing in 2024. The Federal Aviation Administration restricted Max jet production following the incident on an Alaska Airlines flight until Boeing was able to persuade federal regulators that it had fixed manufacturing quality and safety problems.
Sales of new aircraft were also negatively impacted, as were the company’s finances and reputation. In terms of overall net orders for commercial aircraft, which accounts for cancellations, Boeing finished the year well behind Airbus and did not receive any 737 Max orders for at least two months.
Before the opening bell, shares of Arlington, Virginia-based Boeing Co. increased by less than 1%.
The Associated Press
