Boeing reported $3.8bn in losses for the fourth quarter of 2024 and $11.83 loss for the year, reflecting another challenging twelve months.
The fourth-quarter loss was nearly three times Wall Street’s expectations, and faced losses of $3.15bn in the Defense, Space & Security sector during the first nine months of 2024.
The company has incurred over $20bn in losses since 2019, following the crashes of the 737 MAX which raised issues about production quality and regulatory transparency.
As of late 2024, Boeing has improved its supply chain and ramped up its output to five 787 jets monthly, despite some delays primarily with seating.
Efforts to solve engineering problems continue; flight tests for its 777X model resumed recently, while work on anti-icing systems for its 737-7 and -10 aircraft is still in the testing phase.
The company’s troubles began in January 2024 with a mid-flight incident involving a 737 max jet and included challenges with its Starliner rocket in June.
In 2024, Boeing delivered roughly 350 aircraft, a decline from approximately 530 in the previous year and trailing behind Airbus’s nearly 770 deliveries. Thins are changing. Boeing delivered more aircraft in January than Airbus.
New CEO Kelly Ortberg, appointed in August, plans to make significant personnel cuts and focus on improving engineering quality to restore Boeing’s reputation.
The resumption of 737 production occurred in December 2023 following a 53-day machinists’ strike, with AirInsight noting progress in delivery rates, particularly to Chinese customers during January.
Analysts say Boeing’s preliminary results may serve as a clearing event, enabling better performance moving into 2025, with an adjusted net loss of $2.3bn projected for that year.
Supplier relations have improved, as Boeing is focusing on working with reliable suppliers, although labor shortages may still affect production rates and the overall capacity of the supply chain remains uncertain.
See press release for results here
