Boeing CEO Kelly Ortberg announced a recovery plan for the company during the 14th annual U.S. Chamber of Commerce Foundation Aviation Summit in Washington, D.C., on January 28, 2025. This comes after Boeing reported a $3.86 billion loss in the fourth quarter of 2024, marking its sixth consecutive annual loss and raising concerns among investors.
- Boeing posted sixth consecutive annual loss.
- CEO Kelly Ortberg outlines recovery plan.
- Machinist strike caused significant production delays.
- Defense unit revenue fell by 20%.
- American Airlines cuts schedule due to delays.
- Ortberg faces scrutiny over cost overruns.
Boeing’s financial struggles have been exacerbated by a nearly two-month machinist strike that halted production and delayed deliveries. The company reported a total annual loss of $11.83 billion, the largest since 2020. In the fourth quarter alone, Boeing’s commercial aircraft unit faced $3 billion in charges, contributing to a revenue drop of 55% to $4.76 billion. The defense unit also suffered, with a 20% revenue decline, amounting to $5.4 billion for the quarter.
Key statistics from Boeing’s recent earnings report include:
- Loss per share: $5.90 adjusted vs. $3.00 expected
- Revenue: $15.24 billion vs. expected $16.21 billion
Ortberg emphasized the need to stabilize output and improve the company’s culture while focusing on its core businesses. He indicated that Boeing is also preparing for future investments while considering potential spin-offs of non-core units. The company has resumed production of its 737 Max aircraft and restarted test flights of the 777X, which has not yet received FAA certification. However, delivery delays continue to affect major customers like American Airlines and Ryanair, prompting operational adjustments.
As Boeing navigates these challenges, the focus remains on recovery and stabilization. The company’s efforts to address production issues and improve its financial outlook will be closely monitored by investors and industry stakeholders in the coming months.
