Boeing Reports Quarterly Loss

Boeing, the US aviation giant, reported a quarterly loss of $5.4 billion, largely due to a $5 billion penalty for delaying the first delivery of its 777X model to 2027. The loss included compensation for customers who faced delayed deliveries.

Delayed Widebody Aircraft

The 777X is critical to Boeing’s long-term widebody strategy, which aims to capture the market share previously held by the larger 747s and 777s on busy, longer, and often international routes. Repeated certification and production delays have pushed back deliveries since the plane’s first flight in 2020, with Boeing racking up $15 billion in costs in the process, further straining its finances.

The problems have opened the door to Boeing’s European rival Airbus, which is trying to boost sales of its new long-haul, high-capacity workhorse, the A350. The timing is also less than ideal, as demand for international air travel is surging again following the COVID-19 pandemic and airlines are once again interested in purchasing new aircraft.

Impact on Boeing’s Finances

Shares of the aircraft maker lost about 1% in premarket trading. Wall Street analysts had already predicted bad news about the 777X before the announcement. However, the company’s sales of $23.3 billion in the quarter were 30% higher than the previous year’s figures and exceeded analysts’ expectations. The airline also reported free cash flow of $238 million, its first positive figure since 2023.

Road to Recovery

Boeing aims to recover from its worst single-year result ever in 2024, a net loss of $11.8 billion. After struggling for years with quality problems and production delays on the 737 MAX, punctuated by some serious plane crashes, near misses, and certification revocations, Boeing cautiously sought to increase monthly production in 2025. This followed the resolution of a costly machinists’ strike that lasted from September to November 2024 and involved more than 30,000 employees. The 55 jets delivered by Boeing in September were the strongest performance for that calendar month since 2018 and a significant increase from the 33 aircraft delivered last year.