Boeing lost $5.46 per share in the fourth quarter – equating to a total loss of about $4 billion based on the number of outstanding shares – amid a painful and lengthy machinists’ strike that forced a production stoppage.
The company on 23 January disclosed preliminary 2024 financial results, saying its fourth-quarter loss reflects charges of nearly $3 billion against its commercial and defence aircraft programmes.
Meanwhile, it still expects to deliver the first 777-9 in 2026.
That news comes several days after Boeing resumed 777-9 flights after having grounded the four-aircraft flight-test fleet in August last year due to fractured structural engine components.
Boeing is scheduled to disclose its finalised fourth-quarter and full-year 2024 financial results on 28 January.
Its preliminary disclosure says fourth-quarter revenue came in at $15.2 billion, down 31% year on year. It burned $3.5 billion in cash during the last quarter.
“Although we face near-term challenges, we took important steps to stabilise our business during the quarter,” says Boeing chief executive Kelly Ortberg.
Those steps include reaching an agreement with the International Association of Machinists & Aerospace Workers (IAM), ending a 53-day strike in early November. Boeing also raised fresh investment during the final quarter, ending the year with $26.3 billion in cash and equivalents.
“We also restarted 737, 767 and 777/777X production, and our team remains focused on the hard work ahead to build a new future for Boeing,” Ortberg adds.
Boeing says its fourth-quarter loss reflects “impacts associated with the IAM work stoppage and agreement, including lower deliveries”. It is not more specific.
The airframer will recognise a $1.1 billion fourth-quarter charge against its 767 and 777X programmes, specifying that the latter faces “higher estimated labour costs associated with finalising” the new workforce deal. Those costs will be “incurred over the next several years”.
Boeing says its commercial aviation unit brought in $4.8 billion in fourth-quarter revenue, which is less than half the $10.5 billion the division generated in the same period of 2023.
Boeing Defense, Space & Security, meanwhile, will take a $1.7 billion charge in the fourth quarter against the 767-based KC-46A military tanker, T-7A trainer, 747-based VC-25B presidential aircraft and MQ-25 refuelling drone programmes, the company says.
Story updated on 27 January to correct Boeing’s expected fourth quarter loss per share, which is $5.46.
