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An aerial view of the engines and fuselage of an unpainted Boeing 737 MAX airplane parked in storage at King County International Airport-Boeing Field in Seattle, Washington.
Lindsey Wasson | Reuters
Boeing said Thursday that it likely lost about $4 billion in the fourth quarter, adding to troubles at the manufacturer, which began 2024 with a midair accident and ended it with a crippling labor strike and layoffs.
The company said it expects to post a loss of $5.46 per share for the fourth quarter. It said it expects its revenue to be $15.2 billion, less than analysts’ expectations, according to LSEG estimates. Boeing said it likely burned through $3.5 billion in cash during the quarter. The company raised more than $20 billion in the quarter to boost liquidity during its crises.
Boeing has not posted an annual profit since 2018.
The company expects to take a $1.1 billion charge on its 777X and 767 programs because of the strike and new contract.
“Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet,” Boeing CEO Kelly Ortberg said in a news release.
Boeing has struggled to regain its footing after a door plug blew out midair in January 2024, sparking a new safety crisis at the company that was trying to put behind it the fallout from two fatal crashes in 2018 and 2019.
The near-catastrophic accident brought new federal scrutiny and a slowdown of deliveries of new planes. A nearly two-month machinists strike that started in September shut down most of its commercial aircraft production. The workers, mostly in the Puget Sound area, won a new contract in November.
The all-important commercial airplane unit revenue will likely come in at $4.8 billion, with a negative operating margin of nearly 44%.
Boeing’s problems also extend to its defense unit, for which it expects to record pretax charges of $1.7 billion on the KC-46A tanker, and the long-delayed 747s that will service as the new Air Force One aircraft, as well as its space programs.
