On Wednesday, October 23rd, Boeing reported a staggering $6.2 billion loss for the third quarter, its largest since the pandemic-related downturn of 2020. New CEO Kelly Ortberg, who took over in August, outlined his vision for a leaner, more focused company during an earnings call. Ortberg admitted that Boeing is “at a crossroads” and emphasized the need for a fundamental culture change to address persistent issues across the company’s commercial and defense units.
The commercial airplane unit was responsible for $4 billion of the quarterly losses, largely due to delays in the development of the 777X jet, which has now been pushed back to 2026. Boeing is also winding down production of its 767 freighter jets, further adding to the financial strain. The defense division reported a $2.4 billion loss, with part of the deficit linked to problems with the Starliner spacecraft, which returned from the International Space Station without crew members after an aborted mission.
Boeing’s financial troubles have been exacerbated by a strike involving 33,000 machinists in Washington state. The strike, which began on September 13th, halted production of Boeing’s aircrafts, costing the company an estimated $1 billion per month.
Despite these challenges, Ortberg remains optimistic about Boeing’s future, though he cautions that recovery will be slow. The company has been dealing with a series of operational failures, and its long-term debt has ballooned to $53 billion. Boeing’s financial struggles began in 2019 with the grounding of the 737 Max following two fatal crashes, and it has since reported ongoing losses.
Boeing is also facing pressure from S&P Global, which may downgrade the company’s credit rating to junk status. As Boeing works to resolve its labor disputes and improve production, it continues to rely on its position as one of the world’s two largest aircraft manufacturers.
