Boeing reports largest annual loss since 2020, totaling $11.83B
What's the story
Boeing, the American multinational corporation that designs, manufactures, and sells airplanes, has reported its largest annual loss since 2020.
The company's losses for the year stood at a staggering $11.83 billion.
The financial downturn is attributed to challenges in its commercial and defense sectors as well as a major strike by factory workers on the US West Coast.
Leadership response
CEO acknowledges challenges and progress
Boeing's CEO Kelly Ortberg has admitted the company's struggles. However, despite the challenges, he emphasized progress in stabilizing production lines.
Ortberg also reiterated Boeing's commitment to a multi-year plan to improve its culture.
This comes as the company faces increased competition from rival Airbus and scrutiny from regulators after a series of missteps.
Defense downturn
Defense unit reports significant losses
Boeing's Defense, Space & Security business recorded losses of $3.15 billion in the first nine months of 2024.
The company had earlier warned of an overall fourth-quarter loss of about $4 billion, nearly three times what Wall Street had expected.
Ortberg called these results "disappointing" but assured that the firm is now more proactive and clear-eyed on the risks to these programs.
Financial trajectory
Journey from record profits to significant losses
Boeing, which had record-high profits in the 2010s, has lost over $20 billion since 2019.
The financial decline was sparked by two fatal crashes of its top-selling 737 MAX jet, raising concerns over production quality and safety.
The COVID-19 pandemic also took a toll on the company's finances.
A mid-air panel blowout on a nearly new 737 MAX in early 2024 sent Boeing into another crisis.
Certification hurdles
Commercial planes division working to solve issues
Boeing's commercial planes division is already working to get three of its models certified.
The company has made headway with its supply chain, and returned to an output rate of five 787 jets per month by the end of last year.
However, Ortberg was cautious in his update about resolving problems with anti-icing systems on the 737-7 and -10 models.