Boeing, the aerospace giant, has reported a fourth-quarter loss of $3.8 billion for 2024, bringing its cumulative losses to over $35 billion since the fatal 737 Max crashes in 2019.
The company’s annual loss for 2024 stands at $11.8 billion, marking its largest deficit since 2020. This downturn is attributed to a combination of factors, including a significant machinists’ strike, production challenges, and ongoing repercussions from past safety incidents.
In the fourth quarter, Boeing’s revenue declined by 31% year-over-year to $15.24 billion, missing analysts’ expectations. The company also reported a negative operating cash flow of $3.45 billion for the quarter.
The machinists’ strike, which lasted two months and concluded in November, significantly disrupted production, particularly affecting the assembly of key jet models. Consequently, Boeing delivered 348 jetliners in 2024, a decrease from 528 in 2023.
Kelly Ortberg, who assumed the role of CEO in late 2024, acknowledged the company’s challenges and emphasized the need for fundamental changes. “We are focused on making the fundamental changes needed to restore trust with our stakeholders,” Ortberg stated.
Industry analysts highlight that Boeing’s cumulative losses since 2019 reflect the profound impact of the 737 Max grounding, the COVID-19 pandemic, and other operational hurdles. The company’s total losses over the past six years amount to approximately $36 billion.
Looking ahead, Boeing aims to stabilize its production lines, improve company culture, and address issues within key programs. However, Ortberg indicated that there are no immediate plans to develop a new airplane, focusing instead on rectifying current challenges.