In contrast to predictions of a US$347 million profit for the third quarter of the year by analysts surveyed by Refinitiv, Boeing Co. has posted a quarterly loss of US$3.3 billion, appreciably worse than the US$132 million it posted for the same quarter last year.
The news has come as even more of a surprise as the company had posted a profit in the second quarter with a net income of US$160 million. Boeing has been quick to point to massive hits it has taken in the Air Force One contract and also the Starliner programme. Boeing has already admitted that the contract to refurbish two 747 jets that will become the next generation of Air Force One has been a mistake. The fixed-price contract set at US$3.9 billion has seen Boeing already take a US$660 million charge for losses on the planes in the first quarter of this year. In addition, the jets are well behind schedule and have now been slated for delivery in four years’ time.
To compound Boeing’s woes, its Starliner programme to build capsules which will carry astronauts to the International Space Station has also added to the US$3.3 billion loss, though Boeing have not revealed how much of the defence and space unit’s US$2.8 billion operating loss was attributable to the programme. The long-delayed project has now been further delayed and in August the company pushed back the first crewed flight until early next year.
Despite the commercial jets business delivering 112 planes in the quarter and revenue increasing by 4% to US$16 billion, the division still managed to post an operating loss of US$643 million for the quarter. (£1.00 = US$1.16 at time of publication).
