Boeing has announced an estimated loss of US$4 billion for the fourth quarter of 2024, reflecting significant financial and operational challenges. The company projects a loss of US$5.46 per share and US$15.2 billion in revenue—below analysts' expectations, according to LSEG estimates. Additionally, Boeing burned through US$3.5 billion in cash during the quarter but raised over US$20 billion to bolster liquidity.
The manufacturer has not reported an annual profit since 2018 and faced a turbulent year marked by a January mid-air accident, federal scrutiny, and a nearly two-month machinists' strike that disrupted commercial aircraft production. The strike ended in November with a new contract for workers, primarily in the Puget Sound region.
Boeing anticipates a US$1.1 billion charge on its 777X and 767 programmes due to strike-related impacts and new agreements. The commercial airplane unit revenue is expected to be US$4.8 billion, with a negative operating margin nearing 44%.
Boeing CEO Kelly Ortberg acknowledged the company's short-term challenges but highlighted efforts to stabilise operations, including a successful capital raise and agreements with unionised workers.
In addition to commercial setbacks, Boeing's defence and space divisions also face significant losses. The company expects US$1.7 billion in pre-tax charges on its KC-46A tanker, delays with 747s designated as the new Air Force One and issues within its space programmes.
The mid-air door plug failure in early 2024 compounded Boeing's ongoing struggles to recover from the fallout of two fatal crashes in 2018 and 2019. This safety incident led to heightened regulatory scrutiny and slowed deliveries of new aircraft, further hampering the company's recovery efforts.
As Boeing works to overcome these challenges, it faces the dual task of restoring financial stability and regaining customer trust in its products and operations.