Boeing posts three-month loss of $ 2.4 billion

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“We have remained focused on the health of our employees and our communities while taking proactive steps to manage the unprecedented business impacts of the COVID-19 pandemic,” Boeing CEO Dave Calhoun said in a statement. “We are working closely with our customers, suppliers and global partners to manage the challenges of our industry, bridge the recovery and rebuild ourselves to be stronger on the other side.

Wall Street was not shocked. Investors were already aware of Boeing’s 10-jet deliveries last month as it began ramping up production after its plant was shut down by the pandemic, and analysts’ expectations for Boeing’s revenue and net loss were right .

Boeing shares edged up during the pre-market trading period.

The company also revealed earlier in July that it was only able to deliver 20 commercial jets in the last quarter – the lowest number of commercial jets Boeing delivered in a quarter since 1977.

And 60 orders for Boeing aircraft were canceled last month, adding to 150 orders canceled in March, 108 in April and another 18 in May.Boeing’s customers, the airlines, have been among the hardest hit by the pandemic. The collapse in demand for air travel has forced carriers to stockpile thousands of jets, leaving airlines to bleed tens of millions of dollars every day with no end in sight.

That leaves little appetite for buying new planes from manufacturers like Washington-based Boeing and European Airbus.

“The reality is that the impact of the pandemic on the aviation industry continues to be severe,” Boeing CEO Calhoun said Wednesday in a separate letter to employees. “While there have been encouraging signs, we estimate it will take around three years to return to 2019 passenger levels.”

Boeing still has more than 4,500 orders in its backlog – enough to keep its factories operating for years to come. But the June results mean Boeing has 843 canceled or uncertain orders in 2020, compared to just 59 new orders.

The company only recorded one new sale last month: a 767 freighter intended for FedEx (FDX). With an increase in e-commerce orders and the demand for transporting medical equipment around the world, freight carriers have proven to be the only bright spot in the airline industry.

To help ease financial pressure, Calhoun said the company has temporarily stopped paying dividends to investors, halted its share buyback program, cut expenses and costs and incurred $ 25 billion in debt. .

However, not all of Boeing’s aircraft sales issues were linked to the pandemic: the company is still in the early stages of resuming production of its besieged 737 Max. The 737s, which were once Boeing’s best-selling planes, remain stranded after faulty software on the jets was linked to two fatal crashes.

Boeing said on Wednesday it had “made steady progress towards the safe return to service of the 737, including the completion of FAA certification flight tests” in the last quarter.

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