Boeing Expects $4 Billion Loss for Fourth Quarter after Chaotic 2024

Boeing’s Financial Struggles Continue: Losses Expected in Q4

Boeing, the world’s largest aircraft manufacturer, announced on Thursday that it likely lost around $4 billion in the fourth quarter of 2024. This comes as the company continues to face challenges following a midair accident in January 2024 and a subsequent labor strike and layoffs.

Financial Expectations

Boeing expects to post a loss of $5.46 per share for the fourth quarter, with revenue expected to be $15.2 billion. This is less than the analysts’ expectations, according to LSEG estimates. The company also burned through $3.5 billion in cash during the quarter and raised more than $20 billion to boost its liquidity.

Impact on Operations

The company’s commercial airplane unit revenue is expected to come in at $4.8 billion, with a negative operating margin of nearly 44%. Boeing’s defense unit is also facing challenges, with the company expecting to record pretax charges of $1.7 billion on the KC-46A tanker and the long-delayed 747s that will service as the new Air Force One aircraft.

CEO’s Statement

"We took important steps to stabilize our business during the quarter, including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet," said Boeing CEO Kelly Ortberg.

Challenges Ahead

Boeing has struggled to regain its footing after a door plug blew out midair in January 2024, sparking a new safety crisis at the company. The incident brought new federal scrutiny and a slowdown of deliveries of new planes. A nearly two-month machinists strike that started in September shut down most of its commercial aircraft production. The workers, mostly in the Puget Sound area, won a new contract in November.

Conclusion

Boeing’s financial struggles continue, with the company expected to post a significant loss in the fourth quarter. The company faces significant challenges, including a decline in commercial airplane sales and a prolonged strike by machinists. Despite these challenges, Boeing remains committed to stabilizing its business and improving its financial performance.

FAQs

Q: What is Boeing’s expected loss for the fourth quarter?
A: Boeing expects to post a loss of $5.46 per share for the fourth quarter.

Q: What is the expected revenue for the fourth quarter?
A: Boeing expects revenue to be $15.2 billion for the fourth quarter.

Q: How much cash did Boeing burn through during the quarter?
A: Boeing burned through $3.5 billion in cash during the quarter.

Q: What is the expected pretax charge on the KC-46A tanker and the 747s that will service as the new Air Force One aircraft?
A: Boeing expects to record pretax charges of $1.7 billion on the KC-46A tanker and the 747s that will service as the new Air Force One aircraft.