Saturday, January 25, 2025 Boeing has announced that it anticipates a staggering $4 billion loss in the fourth quarter of 2024, highlighting a turbulent year for the aerospace giant. The loss stems from a combination of factors, including a seven-week labor strike by International Association of Machinists and Aerospace Workers (IAM) members and significant pre-tax charges in the Defense, Space & Security division. The financial report, slated for release on January 28, 2025, will underscore the challenges Boeing faced in stabilizing its operations.
The IAM labor strike was a key disruptor for Boeing’s Commercial Airplanes division, affecting production schedules and delivery capabilities. This disruption has led to pre-tax earnings charges of $1.1 billion on the 777X and 767 programs.
The 777X program alone incurred $900 million in charges due to increased labor costs associated with finalizing the IAM agreement. Despite these challenges, Boeing reaffirmed its commitment to delivering the first 777-9 aircraft by 2026. The company reported fourth-quarter revenue of $4.
8 billion for Commercial Airplanes, with an operating margin of negative 43.9%. These figures reflect the cascading effects of labor shortages and delayed production timelines, further compounded by rising manufacturing costs.
Boeing’s Defense, Space & Security division has also been hit hard, with pre-tax earnings charges totaling $1.7 billion across multiple programs. Key impacts include: Despite these set.