Boeing reports a $5.4 billion quarterly loss, driven by a $4.9 billion charge from delayed 777X certification, pushing deliveries to 2027.
NEW YORK: Boeing reported a $5.4 billion third-quarter loss as a massive charge from its delayed 777X aircraft programme weighed on results.
The aviation giant’s revenues jumped 30% to $23.3 billion, boosted by higher commercial plane deliveries.
However, the performance was dragged down by a one-time $4.9 billion charge on the 777X programme, which has faced a prolonged US certification process.
Chief Executive Kelly Ortberg pointed to the Federal Aviation Administration’s October approval of a higher 737 MAX production rate as a sign of progress.
He also noted that Boeing generated positive free cash flow during the quarter, a key benchmark for Wall Street.
But Ortberg said more work is needed to turn the company around after a series of safety problems, including two fatal 737 MAX crashes in 2018 and 2019.
Boeing has now pushed back commercial deliveries of the 777X to 2027, from a previous 2026 target.
“While we are disappointed in the 777X schedule delay, the airplane continues to perform well in flight testing, and we remain focused on the work ahead to complete our development programs and stabilize our operations in order to fully recover our company’s performance and restore trust with all of our stakeholders,” Ortberg said.
In a message to employees, Ortberg said the company’s St. Louis defence operation is executing strike contingency plans after more than 3,000 workers rejected Boeing’s latest contract offer.
Local Boeing officials in St. Louis said the company is accelerating recruitment of replacement workers and welcoming back employees who cross the picket line.
Union leaders have accused Boeing of refusing to negotiate in good faith.
Shares of Boeing fell 0.9% in pre-market trading. – AFP
