Boeing’s new CEO vows to make it ‘iconic’ again after posting $6.1 billion loss in his 1st earnings

• Boeing reported a third-quarter loss of $6.1 billion on Wednesday.
• Its newly-installed CEO Kelly Ortberg said it will “take time to return Boeing to its former legacy.”
• Union members, who have been on strike for 40 days, will vote on a contract offer later in the day.

Boeing reported a net loss of $6.1 billion in the third quarter of 2024, as it grapples with limited production, a machinist strike, and customer frustrations.

Wednesday’s earnings report compared with a loss of $1.44 billion in the previous quarter. While revenue increased 5.8% to $17.84 billion, it was still slightly lower than analyst’s expectations.

A core loss per share of $10.44 was similar to Wall Street predictions.

“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” said Boeing CEO Kelly Ortberg.

“Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing,” he added.

The big losses come at a turbulent period for the planemaker. Its stock is down 36% since the start of the year.

Ortberg took over in August after his predecessor, Dave Calhoun, left amid customers’ frustrations in the wake of January’s Alaska Airlines blowout.

He has had to contend with supply-chain constraints, certification delays, a struggling space division, and the strike during his two months in charge.

Striking workers set to vote on new offer

Later on Wednesday, some 33,000 union members who have been on strike for 40 days are set to vote on the company’s third contract offer.

It could put an end to the tense situation estimated to have cost Boeing over $5 billion, according to an analysis from Anderson Economic Group shared with CNN.

Bank of America analysts said in a Sunday report they’re optimistic about union members voting to end the strike, because the acting Labor Secretary, Julie Su, mediated negotiations.

Earlier this month, Boeing announced plans to lay off 10% of its workforce — around 17,000 people — plus a further delay to its much-anticipated 777X program.

Sir Tim Clark, the president of Emirates — the largest 777X customer — subsequently criticized Boeing and said they would have “a serious conversation.”

Days after the layoff announcement, Boeing said in regulatory filings that it had entered a $10 billion credit agreement with four major banks, and said it may sell up to $25 billion in securities.

“These are two prudent steps to support the company’s access to liquidity,” Boeing said in a statement.