Boeing, one of the world’s leading aircraft manufacturers, has shared preliminary results for the fourth quarter of 2024. The company revealed significant portions of its financial performance ahead of its full quarterly report, which is set to be completed in the upcoming weeks.
New Deal in the Shadow of Strike
In a statement on 23 January, Boeing confirmed it would recognise the financial impacts of the new contract signed after a 52-day strike by machinists represented by the International Association of Machinists and Aerospace Workers (IAM). The company also acknowledged the costs of wage increases in certain programmes and workforce reductions that had been previously announced.
CEO’s Warnings and Optimistic Messages
Boeing CEO Kelly Ortberg indicated that the company would face challenges in the short term but emphasised the stabilising actions the company had taken over the quarter. Ortberg described the agreement with IAM as a significant win.
Additionally, he noted that the capital increase Boeing completed in 2024 had successfully strengthened the company’s balance sheet. Previously warned by credit rating agencies regarding liquidity, Boeing had been at risk of a credit downgrade to “junk” status due to strikes and quality issues. This situation led to voluntary production cuts following incidents such as the Alaska Airlines flight door pressure burst.
FAA Restrictions and New Production Targets
The Federal Aviation Administration (FAA) has set a monthly production limit of 38 737 MAX aircraft for Boeing. Nominee for Transport Secretary Sean Duffy stated that this limit would only be lifted when the quality of the aircraft could be assured.
777X Programme and New Costs
The company has had to account for an additional $1.1 billion in costs related to the 777X programme, with $900 million of this stemming from labour expenses. Delays in the 777-9 flight tests and challenges related to the IAM strike have impacted the certification process. The aircraft, slated for delivery in 2026, has seen these cost escalations.
2024 Results: Quarterly Decline, Year-End Figures
For Q4 2024, Boeing reported $15.2 billion in revenue but posted a loss of $5.46 per share. The company delivered a total of 348 aircraft throughout the year, with 265 of them being 737 MAX models. Airbus, by contrast, delivered 766 aircraft in the same year, surpassing Boeing’s deliveries.
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