Boeing experienced a significant loss of over $6 billion in the third quarter, primarily due to a strike and substantial charges related to its commercial aircraft and defense sectors. The company continues to face challenges as it deals with manufacturing issues and ongoing federal investigations following a mid-air incident in January.
In September, a strike involving 33,000 machinists, who could not reach a contract agreement, halted assembly operations in the Seattle region. In August, Boeing appointed Kelly Ortberg, an experienced aerospace executive, as its new CEO to address safety and manufacturing challenges.
Ortberg, who recently announced a reduction of 10% of the workforce—approximately 17,000 jobs—indicated in his remarks to investors that the company is at a critical juncture. He acknowledged the erosion of trust in Boeing and noted significant performance issues that have disappointed customers.
Boeing is currently unable to produce new 737 aircraft until the strike is resolved. Ortberg emphasized that ending the strike is among his top priorities. On Wednesday, the International Association of Machinists and Aerospace Workers planned to announce the outcome of a vote on a new contract proposal, which includes a 35% pay raise over four years, $7,000 signing bonuses, and the continuation of performance bonuses that Boeing had aimed to cut.
“I am optimistic that the proposal we have presented will enable our employees to return to work, allowing us to refocus on restoring the company,” Ortberg stated. “Once back, we will need to reactivate the factories and the supply chain.”
For the quarter ending September 30, Boeing reported a loss of $9.97 per share, with an adjusted loss of $10.44 per share, slightly above analysts’ expectations of a $10.34 loss. Total revenue for the period was $17.84 billion.
Boeing is one of the world’s largest aerospace companies and a leading manufacturer of commercial airplanes, defense systems, and space technology. Founded in 1916 and headquartered in the United States, Boeing has been at the forefront of aviation innovation for over a century.
The company designs and produces a wide range of aircraft, including the iconic 737, 747, 787 Dreamliner, and the latest in defense technology like fighter jets, drones, and satellites. Boeing is also a key player in space exploration, working with NASA on projects such as the Artemis missions and space launch systems.
With a global presence spanning over 65 countries and tens of thousands of employees, Boeing is dedicated to advancing technology, sustainability, and safety in the aerospace industry while supporting customers worldwide with integrated solutions and services.
