Boeing is bracing for a significant financial setback, expecting a $4 billion loss for the fourth quarter of 2024. The aircraft manufacturer continues to face mounting challenges, including a major safety crisis, a prolonged labor strike, and deteriorating financial performance.
The company anticipates reporting a quarterly loss of $5.46 per share, with revenue expected to reach $15.2 billion—falling short of analyst forecasts. Additionally, Boeing likely burned through $3.5 billion in cash during the quarter. To navigate ongoing financial difficulties, the company raised over $20 billion to bolster liquidity.
Boeing has not reported an annual profit since 2018.
The company is also set to take a $1.1 billion charge on its 777X and 767 programs, primarily due to the impact of the machinists’ strike and a renegotiated labor contract. The strike, which lasted nearly two months and largely halted commercial aircraft production, was resolved in November when workers secured a new contract.
CEO Kelly Ortberg acknowledged the company’s near-term difficulties but emphasized efforts to stabilize operations, including the labor agreement and securing additional capital to strengthen Boeing’s financial position.
The aerospace giant is still reeling from a safety crisis that began in January 2024 when a door plug blew out midair, triggering intense federal scrutiny and slowing aircraft deliveries. This incident revived concerns over Boeing’s safety record, which had already suffered following two fatal crashes in 2018 and 2019.
The company’s commercial airplane division is expected to post $4.8 billion in revenue for the quarter but with a steep operating loss, translating to a negative operating margin of approximately 44%.
Beyond its commercial aviation struggles, Boeing’s defense sector is also under pressure. The company expects to record $1.7 billion in pre-tax charges related to its KC-46A tanker program, the delayed production of the next-generation Air Force One aircraft, and issues within its space programs.
As Boeing heads into 2025, it faces a complex recovery process, balancing financial losses, regulatory scrutiny, and production setbacks. Despite the headwinds, the company remains focused on stabilizing its business and regaining the trust of customers, investors, and regulatory authorities.
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