Boeing has reported its second-largest annual loss in company history, posting a $11.8 billion deficit for 2024, the Guardian reports.
The US aerospace giant faced a challenging year marked by production setbacks, safety concerns, and a crippling seven-week strike by West Coast factory workers, which halted much of its jet production.
Chief executive Kelly Ortberg, who took over in August, is working to stabilize the company as it grapples with heightened competition from European rival Airbus and intensified scrutiny from regulators and customers. Boeing also faces lingering safety concerns following a series of crises involving its best-selling 737 Max jet.
In the fourth quarter alone, the company recorded a $3.9 billion loss, with revenues dropping 31% to $15.2 billion—well below analysts’ expectations. Despite these challenges, Ortberg emphasized that Boeing is making progress in key areas, particularly in restoring stability to its production lines.
Ortberg outlined a four-part strategy aimed at turning the business around, with a particular focus on transforming the company’s internal culture, which he described as a crucial element of the recovery process.
“This is perhaps the most important change we need to make,” Ortberg said.
Boeing has been struggling to regain its footing after a tumultuous few years. Following two fatal 737 Max crashes that led to worldwide grounding and production halts, the company faced mounting concerns over production quality and regulatory compliance. Additionally, the Covid-19 pandemic further exacerbated its financial woes.
A mid-air panel blowout involving a 737 Max a year ago renewed safety concerns and added to Boeing’s challenges. While progress has been made in returning to full production, the company still faces delays in critical areas, such as seat installations and anti-icing system improvements for the 737 Max 7 and 737 Max 10 models.
Ortberg acknowledged that the anti-icing system design solution remains in the testing phase but expressed confidence that Boeing would resolve the issue.
Despite the setbacks, Boeing reported that it had returned to an output rate of five 787 jets per month by the end of 2024. Ortberg highlighted improvements in the company’s supply chain, though he admitted that further work is needed to achieve greater stability.
Boeing continues to invest in its core aerospace and defense businesses while streamlining its portfolio to focus on areas that align with its future growth strategy.
Ortberg’s leadership will be pivotal as Boeing embarks on what he described as a “multi-year journey” to restore its reputation and competitiveness in the global aerospace market.
