Boeing announced a fourth-quarter loss of $3.8 billion on Tuesday, bringing its annual loss for 2024 to $11.8 billion, marking another difficult year for the U.S. planemaker. The company cited a machinists strike, job cuts, and issues with government programs as major factors contributing to nearly $3 billion in charges during the quarter, reads a AFP.
The loss per share of $5.46 exceeded Wall Street’s expectation of $3.08, while quarterly revenue of $15.2 billion fell short of the $15.7 billion forecast. Full-year revenue declined 14% to $66.5 billion.
The machinists' strike, which lasted over seven weeks, disrupted production of Boeing’s key models, including the 737 Max, 777, and 767. The walkout ended with agreements on pay raises and improved benefits. Boeing also faced challenges with its government contracts, including $1.7 billion in charges related to projects such as the Air Force One replacement and military refueling tankers.
Boeing delivered 348 jetliners in 2024, a significant drop from the 528 delivered in 2023 and far behind competitor Airbus. A majority of the deliveries were 737 Max jets, underscoring their importance to Boeing's operations. However, a door plug failure on a 737 Max in January led the Federal Aviation Administration (FAA) to restrict production until safety and quality issues were resolved.
The production issues also impacted new orders, with no 737 Max sales recorded for two months and Boeing ending the year well behind Airbus in net commercial plane orders.
Despite these challenges, Boeing’s stock inched up less than 1% in early trading on Tuesday, reflecting cautious investor sentiment.
Bd-pratidin English/ Jisan
