Boeing faced a difficult year with a steep financial loss and operational setbacks due to strikes and program issues.
Financial Losses and Workforce Reduction
Boeing announced nearly $3 billion (€2.85bn) in charges for the fourth quarter of 2024. These charges stemmed from a prolonged machinist strike, workforce reductions, and challenges with government programs. The company expects to report a loss of $5.46 (€5.19) per share, far exceeding Wall Street’s predicted loss of $1.80 per share.
The machinist strike, which lasted over seven weeks, disrupted production of Boeing’s 737 Max, 777 jet, and 767 cargo plane at Washington state facilities. The strike ended when Boeing agreed to increase wages and benefits. Boeing also confirmed it will reduce its workforce by 10% as part of its cost-cutting measures.
Program Challenges and Revenue Decline
Boeing incurred $1.1 billion (€1.05bn) in charges related to its 777 and 767 programs and an additional $1.7 billion (€1.62bn) for government programs, including a military refueling tanker and Air Force One replacement aircraft.
Revenue for the fourth quarter totaled $15.2 billion (€14.46bn), falling short of analysts’ estimates of $16.6 billion (€15.8bn). Despite these setbacks, Boeing CEO Kelly Ortberg emphasized the company’s efforts to stabilize operations. Ortberg highlighted agreements with machinists, a successful capital raise, and the resumption of production for the 737, 767, and 777/777X programs as steps toward recovery.
Potential Asset Sale and Market Response
To address its $58 billion debt, Boeing may sell its Jeppesen navigation unit for $6–8 billion, according to Bloomberg. Potential buyers reportedly include RTX, Honeywell, and GE Aerospace, with bids due next week.
After releasing preliminary results, Boeing’s share price initially dropped but rebounded by Friday morning, climbing over 2% by 11h CET. The company plans to publish detailed fourth-quarter results on 28 January.
Despite current challenges, Boeing remains focused on building a stronger future for the company and stabilizing its financial position.