Boeing reported a $3.5 billion charge for the last three months of last year due to lengthy delays in the production and delivery of the 787 Dreamliner, leaving the company in a shambles. $4.2 billion loss in the quarter.
The company said on Wednesday it said the Dreamliner costs were caused in part by the realization that the repairs Boeing needed to make to win Federal Aviation Administration approval for the twin-aisle plane . Boeing did not provide an update on when it would restart deliveries of the planes and said it now expects a delay of more than a year to generate “extraordinary costs” totaling $2 billion. dollars over the next two years, bringing the total cost of the delays to $5.5 billion.
“Regarding the 787 program, we are undertaking a comprehensive effort to ensure every aircraft in our production system is within our exact specifications,” said David Calhoun, chief operating officer. Boeing, said in a statement announcing financial results, including a $4.3 billion loss. for the year, the third consecutive annual loss.
“While this continues to weigh on our short-term results, it is the right approach to build stability and predictability as demand returns over the longer term,” he said. . “Throughout the business, we remain focused on safety and quality as we deliver to our customers and invest in our people and sustainable future.”
The company reported revenue of $14.8 billion for the fourth quarter, below analyst estimates. But there were bright spots: Boeing continued to celebrate the return of the 737 Max and reported operating cash flow of $716 million, showing its first positive since the first quarter of 2019.
The Max was ground-breaking by aviation authorities around the world in early 2019, after a total of 346 people died in two crashes on the plane. The FAA became the first regulator to approve the Max, with service returning in late 2020. Since then, most of the world has followed suit and the plane has been used for more than 300,000 flights.
Boeing obtained 356 new Max orders in 2021, helping to deliver best year for commercial aircraft sales since 2018, beating rival Airbus. On Wednesday, Boeing said it is making about 27 Max planes a month, up from 19 in October and is on track to hit a monthly production target of 31 by the start of the year.
But the success of Max’s return was more than offset by the Dreamliner’s delay, which lasted more than a year. In September 2020, Boeing says it expects delivery of the jet, commonly used for long-haul international trips, was delayed as it worked with the FAA to resolve some quality issues.
Boeing restarted deliveries in March only to halt months after the company and the FAA disagreed over how to determine which planes to check next. Boeing said Wednesday that it and the agency are still discussing the work needed before deliveries can resume.
Plane production has slowed, and delays could hold back the aviation industry’s recovery. American Airlines said last month that delays in receiving 13 Dreamliners this winter have caused the airline cut the number of scheduled international flights offered this summer. Last week, the airline said it still expected to take delivery of the planes starting in April and that it was in discussions with Boeing about compensation for the delays, some of which it has already received.
Similarly, United Airlines also said it was forced to cut its services due to delays in the delivery of the Dreamliners it expected to receive in the first half of 2021 and now expects to receive it. after this summer.
https://www.nytimes.com/2022/01/26/business/boeing-earnings.html Boeing Articles Quarterly $4.2 billion loss due to 787 delays continues