The American aircraft manufacturer Boeing announced an annual loss of $11.83 billion for 2024, marking the largest annual loss Boeing has incurred since 2020. At the same time, the aircraft maker reported a loss of $3.86 billion in the fourth quarter, driven by disappointing defense program costs.
Additionally, Boeing's quarterly revenue dropped 31% year-on-year to $15.24 billion, falling short of analysts' expectations. The company's total cash burn for this year reached $14.3 billion, significantly higher than the cash flow in the previous year.
Boeing attributed its significant losses to the numerous challenges facing its commercial and defense divisions, along with the impact of the major strike by factory workers on the West Coast. This loss reflects the difficulties faced by CEO Kelly Ortberg in revitalizing the company, which continues to lose more customers to its European competitor Airbus, especially with the increased scrutiny it faces regarding safety and regulatory issues.
Commenting on the results, Ortberg emphasized the efforts being made to improve Boeing's performance and production lines while addressing safety concerns, such as the issues related to the 737 MAX and ice protection systems in some 737 models. The company is focusing on stabilizing its operations, improving supply chain management, and increasing aircraft production rates.
In trading, Boeing's stock (NYSE: BA) rose by 4.52% to $182.46 after the CEO stated that Boeing is currently working to expedite replacement operations in the defense sector.
