Boeing reports biggest annual loss since 2020
By Josh White
Date: Tuesday 28 Jan 2025
(Sharecast News) - Boeing reported an annual loss of $11.83bn for 2024 on Tuesday, marking its largest deficit since 2020.
The aerospace giant said it faced challenges across its commercial and defense divisions, compounded by a two-month strike by union machinists and lingering fallout from production and safety concerns.
It posted a fourth-quarter loss of $3.86bn, significantly larger than Wall Street projections, with revenue of $15.24bn falling short of analysts' expectations.
Chief executive officer Kelly Ortberg, who took over in mid-2024, acknowledged the magnitude of the company's struggles, citing operational instability, cultural deficiencies, and financial pressures.
Ortberg laid out a multi-year recovery plan focussed on stabilising production, addressing safety concerns, and improving the company's culture.
"My team and I are focused on making the fundamental changes needed to fully recover our company's performance and restore trust with our customers, employees, suppliers, investors, regulators and all others who are counting on us," he said.
Boeing's commercial division was hit hard by declining deliveries, which fell to 57 aircraft in the fourth quarter from 157 a year earlier, resulting in a 55% revenue drop for the segment.
The defence, space and security unit also reported a 20% decline in revenue, exacerbated by cost overruns on fixed-price contracts and delays on high-profile programs such as the KC-46 tanker and Air Force One.
Compounding the difficulties, production challenges and safety concerns persisted.
A midair panel detachment on an Alaska Airlines 737 MAX early in 2024 reignited scrutiny of the jet's safety, while delays in certifying key models, including the 777X and smaller variants of the MAX, hindered recovery efforts.
The company resumed production of the 737 MAX in December and increased output of the 787 Dreamliner widebody airliner to five per month, but warned that supplier constraints and certification hurdles remained.
Boeing's backlog, valued at $521bn with over 5,500 aircraft orders, did offer a foundation for future growth.
However, Ortberg stressed that addressing cultural and operational flaws was critical to a sustained turnaround.
Boeing's last profitable year was 2018, and it had lost over $20bn since then, driven by the 737 MAX crises, pandemic disruptions, and ongoing production issues.
At 0736 EST (1236 GMT), shares in the Boeing Company were up 0.47% in premarket trading in New York, at $175.99.
Reporting by Josh White for Sharecast.com.
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