Boeing reported a loss of $11.83 billion for the year on Tuesday, marking its largest loss since 2020. The company faced significant challenges within both its commercial and defence sectors, compounded by the impact of a crippling strike by factory workers on the U.S. West Coast.
The loss highlights the difficulties CEO Kelly Ortberg faces in turning the company around as Boeing loses ground to rival Airbus in the race to deliver aircraft, while also coming under increasing scrutiny from regulators and customers following a series of blunders.
Boeing’s shares dipped slightly in pre-market trading on Tuesday.
Ortberg, who assumed leadership in August, remained optimistic, stating that Boeing was making strides in stabilising its production lines after a serious mid-air accident in 2024 raised safety concerns about the company’s jets.
The company recorded a $3.86 billion loss in the fourth quarter, attributed to “disappointing” charges in several fixed-price defence contracts. However, Ortberg assured that Boeing was “more proactive and clear-eyed on the risks” associated with these programmes.
Revenue for the quarter ending in December fell by 31% to $15.24 billion, falling short of analysts’ expectations of $16.21 billion, according to data from LSEG.
The adjusted loss per share for the quarter was $5.90, worse than the anticipated $3 loss per share.
Boeing’s cash burn for 2024 stood at $14.3 billion, compared to a cash flow of $4.43 billion in 2023.
Ortberg reiterated Boeing’s four-part strategy to turn the company around, which includes a “multi-year journey” to improve the company’s culture, which he described as “perhaps the most important change we need to make.”
After achieving record profits in the 2010s, Boeing has now lost more than $30 billion since 2019, triggered by two fatal crashes involving its best-selling 737 MAX jet. These crashes raised concerns about production quality, safety, and whether the company had misled regulators during the jet’s certification process.
The COVID-19 pandemic further strained the company, and a mid-air panel blowout on a nearly new 737 MAX in early 2024 thrust Boeing into yet another crisis.
“We have completed deep dives on all of our challenging fixed-price development programmes,” Ortberg said in a letter to employees.
Boeing’s Defence, Space & Security division posted a loss of $5.41 billion in 2024.
Ortberg also noted progress with the company’s supply chain, stating that Boeing had returned to an output rate of five 787 jets per month by the end of 2024, despite some delays in areas like seats.
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Boeing’s commercial aircraft division is now focused on certifying three of its models and has made headway in addressing a thrust link issue on its 777X widebody, which resumed flight tests earlier this month.
Ortberg remained cautious about the ongoing efforts to resolve anti-icing system issues on the 737-7 and -10 models. He confirmed that Boeing was “still working through the testing phase” and focusing on finalising the design solution for the anti-icing systems.
The company continues to invest in its core businesses, while simplifying its portfolio by reducing areas that are not central to Boeing’s future.
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