Boeing reported a staggering $11.8 billion loss for 2024, marking its worst financial result since 2020 when the aviation industry was hit hard by the COVID-19 pandemic. The aerospace giant struggled with a combination of safety crises, quality control failures, and a damaging strike, which severely impacted its operations.
In the final quarter of the year, Boeing faced a $3.8 billion loss, largely driven by a seven-week strike by 33,000 workers, primarily based in the Seattle area. This strike halted production at key factories, including those responsible for the 737 Max, 777, and 767 freighter models. The strike, which began in September, reflected worker dissatisfaction over pay and retirement benefits. Although the dispute was resolved by early November, the production stoppage dealt a major blow to Boeing’s finances.
Boeing’s troubles were compounded by ongoing quality control and safety issues. In January 2024, a serious incident occurred when a door panel detached from a newly delivered 737 Max shortly after takeoff, exposing the plane to potential danger. Investigations revealed that the panel had not been properly secured, a mistake that highlighted significant quality control lapses at both Boeing and its key supplier, Spirit Aerosystems. This incident raised fresh concerns about Boeing’s commitment to safety, a topic that had already been in the spotlight following two fatal crashes involving another 737 model, the Max 8, in 2018 and 2019.
These challenges forced Boeing to halt production temporarily and prompted regulators to demand substantial changes in its safety and quality procedures. In response, Boeing appointed Kelly Ortberg as CEO in August 2024, hoping that his engineering background would bring stability and restore confidence in the company.
Despite efforts to stabilize operations, Boeing faced additional setbacks. The company was forced to delay the introduction of the 777X, a new version of its long-haul aircraft, which had already been delayed for years. Originally expected to enter service in 2025, the aircraft will now not carry passengers until 2026.
Boeing’s commercial aircraft deliveries were also far behind its main competitor, Airbus, which delivered 766 planes in 2024. Boeing only managed to deliver 348 commercial aircraft during the year.
While the company’s defense division faced less public scrutiny, it was equally affected, reporting a loss of over $5 billion due to rising costs on military contracts.
Despite these setbacks, Ortberg remained optimistic, stating, “We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan.” He emphasized that the company was committed to making the necessary changes to recover and rebuild trust with its stakeholders.
