Aircraft manufacturer Boeing Co. (BA) is projecting a $4 billion U.S. loss for the fourth quarter of last year.
The company said the loss is the result of a labour strike that occurred last autumn, along with numerous safety and manufacturing problems encountered over the course of 2024.
Boeing warned in a pre-earnings announcement that it expects to post a loss of -$5.46 U.S. per share for the fourth quarter.
It said it expects revenue for the quarter to come in at $15.20 billion U.S., less than Wall Street expected. Management said they burned through $3.50 billion U.S. of cash during the quarter.
Boeing has not posted an annual profit since 2018 amid ongoing troubles at the manufacturer of commercial airplanes.
Management said that they expect to take a $1.1 billion U.S. charge in the fourth quarter because of the worker strike and new labour contract that was signed.
Boeing has struggled to regain its footing after a door plug blew off one of its aircraft during a midair flight in January 2024, sparking a safety crisis at the company.
That incident came after two Boeing aircraft experienced fatal crashes in 2018 and 2019. Those
catastrophic accidents brought new federal scrutiny and a slowdown in deliveries of new planes.
A nearly two-month machinists strike that started last September shutdown Boeing’s commercial aircraft production. The workers won a new contract last November.
Boeing’s problems also extend to its defense unit and space programs, which management said are also losing money.
The stock of Boeing Co. has declined 17% over the past 12 months to trade at $178.50 U.S. per share.
