Boeing reduces its losses by 16% to $355 million

Redacción - Aviación al Día

1 year ago

U.S. aircraft manufacturer Boeing reported Wednesday a loss of $355 million in the first quarter of 2024, down 16% from the same period last year, despite the crisis it is experiencing following a series of incidents on several of its aircraft.

However, the company’s revenue was down 8% from January-March 2022 to $16.569 billion, the company said in a statement.

The company has been in the spotlight since a panel covering the space for an emergency door on a Boeing 737 MAX 9 operated by Alaska Airlines detached shortly after takeoff in early January 2024.

Following the incident, the Federal Aviation Administration (FAA) launched a series of investigations and discovered quality problems at both Boeing and Spirit AeroSystems, its supplier.

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This incident has slowed production of the 737 model to a figure below 38 aircraft per month to incorporate quality improvements, the company reports, bringing total deliveries down to 83 (of all models), down from 130 aircraft delivered in the first quarter of 2023.

Revenues from its commercial aircraft unit fell 31% year-on-year to $4,653 million.

“We will take the time to strengthen our quality and safety management systems,” Boeing President and CEO Dave Calhoun, who recently announced his departure from the company later this year, said in this regard.

Meanwhile, the company’s Defense, Space and Security unit increased revenues by 6% in the first quarter to $6.95 billion, with the award of 17 P-8A Poseidon aircraft for the Royal Canadian Air Force and the German Navy being the highlight.

Its Global Services business also increased its turnover by 7% to US$5,045 million, thanks to a higher commercial volume.

The results exceeded investor expectations and in early trading on Wall Street Boeing shares were up 3%, reported EFE.