Boeing posts $3.8 billion Q4 loss and has lost more than $35 billion since fatal crashes in 2019, BA

Boeing reported a fourth-quarter loss of USD 3.8 billion on Tuesday as a machinists strike and other issues continued to affect the troubled aircraft manufacturer.

Boeing has incurred losses exceeding USD 35 billion since 2019 following the crashes of two then-new Max jets that resulted in the loss of 346 lives. For the entire year of 2024, Boeing recorded a loss of USD 11.8 billion.

The figures released by Boeing align with what the company had previously disclosed, which included nearly USD 3 billion in charges during the period due to the labor strike, workforce reductions, and challenges with various government projects.

Boeing’s loss per share stood at USD 5.46, significantly higher than the expected USD 3.08 loss projected by Wall Street analysts, as reported by FactSet.

The fourth quarter marked a challenging year for Boeing. The strike by machinists responsible for assembling the popular 737 Max, along with the 777 jet and the 767 cargo plane at facilities in Renton and Everett, Washington, led to production halts and hindered Boeing’s delivery capabilities.

The strike concluded after over seven weeks when the company agreed to salary increases and enhanced benefits.

The company reiterated much of what was mentioned in last week’s release, including charges totaling USD 1.1 billion related to the 777 and 767 programs in the fourth quarter. Boeing also incurred an additional USD 1.7 billion in charges linked to various government projects, including a military refueling tanker and Air Force One replacement aircraft.

Boeing reported fourth-quarter revenue of USD 15.2 billion, slightly below analysts’ revised estimate of USD 15.7 billion, according to FactSet. The full-year revenue amounted to USD 66.5 billion, marking a 14% decline from 2023.

Consistent with its earlier announcement this month, Boeing stated that it delivered 348 jetliners last year, a decrease of over a third compared to the 528 aircraft delivered to airlines and leasing companies in 2023 and less than half of Airbus’s delivery count for the same period.

Deliveries play a crucial role in generating revenue for aircraft manufacturers, as buyers typically pay a significant portion of the purchase price upon order fulfillment.

Over three-quarters of the aircraft supplied by Boeing were 737 Max jets, underscoring the model’s importance to the company’s successes and challenges.

The company had planned to increase production in 2024 until an incident where a door plug blew off a 737 Max shortly after takeoff from Portland, Oregon, in early January. Following this event on an Alaska Airlines flight, the Federal Aviation Administration restricted Max jet production until Boeing could demonstrate to regulators that it had addressed manufacturing quality and safety concerns.

The financial and reputational impact extended to new aircraft sales. Boeing received no 737 Max orders for at least two months and ended the year significantly behind Airbus in total net orders for commercial planes, a metric that accounts for cancellations.

Shares of Boeing Co, headquartered in Arlington, VA, rose by less than 1% before the market opening.