Troubled Boeing reports multi billion dollar loss at end of 2024

The US aircraft manufacturer closed last year with a steep loss and weak sales, according to preliminary figures released by the company.

The aircraft manufacturer Boeing, said it incurred nearly $3 billion (€2.85bn) worth of charges in the fourth quarter of 2024 due to a lengthy labour stoppage, job cuts and problems with a number of government programmes.

As a result, the Chicago-based aerospace giant said that it will report a loss of $5.46 (€5.19) per share next week when it issues its full financial results.

Wall Street had been expecting a fourth-quarter loss of $1.80 per share.

The sizeable loss caps a rough year for Boeing. A strike by machinists who assemble the best-selling 737 Max, along with the 777 jet and the 767 cargo plane at factories in Renton and Everett, Washington, halted production at those facilities and hampered Boeing’s delivery capabilities.

The stoppage ended after more than seven weeks when the company agreed to increase pay and improve benefits for workers.

The aerospace giant announced previously that it will reduce its workforce by 10%.

The company said on Thursday that it took charges totalling $1.1bn (€1.05bn) related to the 777 and 767 programmes in the fourth quarter.

Boeing took an additional $1.7bn (€1.62bn) in charges related to a number of government programmes including a military refuelling tanker and a replacement aircraft for Air Force One.

In a statement, Boeing CEO, Kelly Ortberg said: “Although we face near-term challenges, we took important steps to stabilise 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.”

He added: “We also restarted 737, 767 and 777/777X production and our team remains focused on the hard work ahead to build a new future for Boeing.”

Boeing said revenue for the fourth quarter totalled $15.2bn (€14.46bn), well below analysts’ estimate of $16.6bn (€15.8bn).

Meanwhile, Boeing could potentially sell its non-core Jeppesen navigation unit, for between $6-8bn, to ease its $58bn debt load, reported Bloomberg.

It cited unnamed sources and said the deal is attracting major aviation suppliers and private equity suitors, including RTX, Honeywell and GE Aerospace, ahead of the deadline for first-round bids next week.

Boeing’s share price fell slightly in the trade after the preliminary results were released on Thursday but changed course and started climbing on Friday morning by more than 2% by 11h CET.

The company is scheduled to release its fourth quarter results with detailed figures on 28 January.