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Boeing has racked up an $8 billion loss for the year so far and recorded a $6.2 billion loss for the third quarter, as a series of crises including the ongoing strike, is taking its toll financially on the company.
The worker strike has halted the production of 737 Max, 777 and 767 planes. Meanwhile, the defense and space divisions have been struggling financially. Also, there is still an ongoing investigation into the fallout of a mid-air panel blowout in January.
The Q3 loss of $6.2 billion, the steepest since Q2 in 2020, as the pandemic hit, is one of the worst quarterly losses reported by Boeing.
The $8 billion loss for the year also marks the sixth consecutive year of a loss for Boeing, a series of losses reaching back to the twin fatal incidents in 2018/2019, involving the 737 Max.
Boeing CEO Kelly Ortberg called for a “fundamental cultural change”, following the announcement of the losses.
“This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again”, he added.
Similarly, Boeing CFO Brian West told analysts, as reported in Reuters, that the company will continue burning cash in the last three months of this year and in 2025. Boeing’s Q3 cash burn was $1.96 billion, far significantly higher than last year’s Q3 cash burn of $310 million.
Boeing is reportedly taking steps to try and address these financial woes, with Reuters reporting a raise of $15 billion earmarked through equity and equity-linked securities.
Hopes of ending the strike, which has gone on for more than five weeks, was dealt another blow as machinists rejected a new proposed labour contract. Boeing’s 38 per month target for producing its 737 Max, originally set for the year’s end has been pushed back because of the strike.
Analysts believe that even if the strike is resolved, Boeing will still face issues in restarting production of 737 Max, 767 and 777 widebodies.
Many suppliers to Boeing have announced furloughs and cut back on investment in recent weeks because of yhr strike, meaning that it will take time to boost work.
