Boeing reports Q3 net loss of $6.17B; CEO vows to stabilize business

Boeing is reporting a net loss of more than $6.17 billion (USD) in the third quarter, according to a financial statement released Wednesday (Oct. 23).

The figure followed a net loss of almost $1.64 billion in the July-September period last year. The aerospace manufacturer's net loss from operations soared to more than $5.76 billion, from $808 million, during that period.

"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 Kelly Ortberg, Boeing’s president and CEO, in a statement. "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."

READ MORE: Boeing to axe a tenth of workforce, secures $10B credit agreement

For the first nine months of this year, net loss totalled almost $8 billion, while net loss from operations amounted to approximately $7 billion.

The losses reflect impacts of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and previously announced charges on commercial and defence programs, Boeing says.

The company’s revenues came in at $17.84 billion in Q3, marking a 1.4 per cent decrease from $18.1 billion in the same quarter last year.

Revenues for the January - September period stood at $51.3 billion, showing an eight per cent decline from $55.8 billion in the same period of 2023.

At the same time, thousands of striking Boeing machinists will vote on a new labor contract. Ortberg, who was named company CEO in July, is hopeful for a deal, according to CNBC.

Turbulent skies

Earlier this month, Boeing announced plans to axe its workforce by a tenth – cutting 17,000 jobs – and postpone production as it deals with issues across its business.

The news was yet another blow at the troubled plane maker, which is grappling with losses of more than $33 billion in the past five years; a string of series of safety lapses; and increased scrutiny from regulators and law enforcement as a result.

Boeing has been under intense congressional scrutiny after an incident in January, during which a defect caused a panel to blow out on a Boeing 737-MAX jet, operated by Alaska Airlines, shortly after takeoff.

No one was injured, but Boeing’s then-chief executive Dave Calhoun said the company was "acknowledging our mistake.”

Boeing’s space and defense business also face losses.

Its first flight of the Starliner space craft left the two astronauts it carried stranded on the International Space Station for months, rather than the short visit they were supposed to make.

In an effort to shore up its balance sheet, Boeing has entered a $10 billion credit agreement with a consortium of major banks.

The credit facility is expected to provide short-term access to liquidity as the company navigates through its challenges.

The company said it could also raise as much as $25 billion in shares or debt over three years to increase liquidity, reports CNBC.

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