Preliminary Q4 results show $3 billion in losses for Boeing

Boeing said that it has incurred $3 billion in losses for the fourth quarter of 2024, as it released its preliminary fourth quarter results, according to various media outlets. 

The losses included resolving the 53-day labour strike of machinists that resulted in a payrise and improved benefits. It also took on additional costs through associated federal government programs including refurbishing Air Force One jets, estimated at $1.7 billion. 

The preliminary results come ahead of Boeing’s expected fourth quarter financial results that are expected this week. 

The company will report a loss of $5.46 per share, which is significantly higher than of $1.80 per share, that Wall Street had been anticipating, according to Associated Press. 

Expected fourth quarter revenue was at $15.2 billion, which was below what analysts had previously expected at $16.6 billion. 

The numbers cap off another year of woe for Boeing as it grappled with a series of setbacks that resulted in a restructuring of the organisation, with a new CEO and a 10% reduction in the workforce. 

Once again, the company grappled with more groundings, as 171 Boeing 737 Max 9s were grounded following the Alaskan Airlines Flight 1282 incident. They are currently being investigated by the Federal Aviation Administration. 

All these variables have combined to not only impact Boeing’s shares but also the wider aerospace supply chain.  

Ryanair, one of Boeing’s largest customers, recently cut their forecast for passenger numbers, from 210 million to 206 million for the upcoming fiscal year. This was the second reduction in a few months, with the previous reduction being from 215 million to 210 million, which was announced in November last year. 

“While Boeing 737 production is recovering from Boeing’s strike in late 2024, we no longer expect Boeing to deliver sufficient aircraft ahead of summer 2025,” said Ryanair chief executive Michael O’Leary, speaking to the Financial Times.