Boeing Faces US$11.8 Billion Loss in 2024, Its Largest in 4 Years

Boeing recorded a US$11.8 billion loss in 2024, its largest in four years, citing operational setbacks, defense cost overruns, and the impact of a major strike. Despite the financial hit, the company's stock rose 6% on Tuesday, bolstered by advancements in aircraft production and delivery.

In January, Boeing delivered 33 737 jets and announced plans to exceed the FAA-imposed production cap of 38 jets per month by the second half of 2025. Additionally, the company has resumed producing five 787 jets per month and aims to increase this to seven once production stabilizes.

While Boeing anticipates continued cash burn in the first half of 2025, it forecasts a return to positive cash flow in the latter half of the year. The defense unit reported a US$5.41 billion loss in 2024 due to overruns on fixed-price programs, reflecting ongoing challenges in this segment.

The company is also addressing certification delays for the 777X and has partnered with Elon Musk to expedite the delivery of Air Force One.

CEO Kelly Ortberg highlighted the importance of cultural and operational reforms for long-term stability, stating: “We have a stable production system. Once we get through this, I expect approval by the second half of the year, enabling us to move to a higher production rate.”