Boeing's financial woes continue with a $3.8 billion Q4 loss, FAA restrictions on 737 Max production, and declining aircraft deliveries.
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| Strikes, safety concerns, and order slumps push Boeing's 2024 losses to $11.8 billion, as the company struggles to recover. Image: Boeing |
Crystal City, Virginia , USA —January 29, 2025
U.S. aerospace giant Boeing has reported a staggering $11.8 billion loss for 2024, with $3.8 billion lost in the fourth quarter alone, as labor strikes, production issues, and ongoing challenges continued to plague the company.
Boeing has now accumulated over $35 billion in losses since 2019, following two fatal 737 Max crashes that killed 346 people. The company faced significant hurdles last year, including a machinists' strike at its Renton and Everett, Washington, facilities, which disrupted production of the 737 Max, 777, and 767 aircraft. The strike, lasting over seven weeks, ended only after Boeing agreed to pay raises and improved benefits.
The company also reported nearly $3 billion in charges related to job cuts, labor stoppages, and issues with government programs, including the military refueling tanker and Air Force One replacement jets. Boeing’s $5.46 per share loss was significantly higher than Wall Street’s expectation of $3.08 per share, according to FactSet data.
Boeing’s revenue for the fourth quarter was $15.2 billion, falling short of analysts’ estimates of $15.7 billion. Full-year revenue dropped 14% from the previous year, totaling $66.5 billion.
Aircraft deliveries, a crucial source of revenue for Boeing, also plunged to 348 jets in 2024, down from 528 in 2023 and far behind rival Airbus, which delivered over twice as many aircraft. The company had anticipated ramping up production in 2024 but was set back by a major safety incident when a door plug blew off a 737 Max shortly after takeoff in January.
Following the Alaska Airlines flight incident, the Federal Aviation Administration (FAA) imposed a cap on 737 Max production, requiring Boeing to address manufacturing and safety concerns before ramping up output. The company also suffered a sales setback, receiving no new 737 Max orders for at least two months, leaving it far behind Airbus in net orders for the year.
Despite these struggles, Boeing shares inched up less than 1% before the opening bell. The company now faces significant pressure to restore its reputation, regain regulatory confidence, and stabilize its financial position as it moves forward in 2025.