Boeing Reports $3.8 Billion Loss in Q4 Amidst Labor and Manufacturing Woes

Boeing's fourth-quarter performance was characterized by a $3.8 billion loss, exacerbated by a machinists strike and ongoing production issues. The troubled aircraft manufacturer has incurred losses exceeding $35 billion since 2019 due to the tragic crashes of two Max jets, resulting in 346 fatalities. For the entire 2024 fiscal year, Boeing reported a loss of $11.8 billion.

The quarterly results align with the company's preliminary announcement last week, including $3 billion in charges stemming from the labor action, workforce reductions, and government program setbacks. Boeing's loss per share reached $5.46, significantly higher than the $3.08 analysts had projected according to FactSet.

The quarter marked the culmination of a challenging year for Boeing. The strike by machinists responsible for assembling the popular 737 Max and other aircraft halted production at facilities in Washington. Boeing's delivery capacity was also impacted, but the labor dispute was eventually settled after seven weeks with the promise of improved compensation and benefits.

In line with the earlier release, Boeing reiterated charges totaling $1.1 billion relating to the 777 and 767 programs. Additionally, $1.7 billion was expensed due to issues with government contracts, including the military refueling tanker and Air Force One replacement aircraft.

Boeing's revenue for the quarter amounted to $15.2 billion, falling short of analysts' revised estimate of $15.7 billion (FactSet). Annual revenue totaled $66.5 billion, down 14% from 2023. The company delivered 348 jetliners in 2024, a decline from 528 in the previous year and significantly less than Airbus's deliveries.

Despite the production ramp-up plans for 2024, a door plug incident on a 737 Max in January prompted the Federal Aviation Administration to cap production until safety concerns were resolved. The setback further impacted Boeing's financial performance and reputation, resulting in a slowdown in new aircraft orders. The company ended the year trailing Airbus in net orders for commercial planes.

Shares of Boeing Co. (Arlington, Va.) experienced a slight increase prior to the market open.