Boeing Wednesday reported a third quarter net loss of $1.6 billion, citing “unfavorable defense performance” and lower 737 aircraft deliveries. Boeing said in-service 737’s can still operate safely but inspections and re-work of some 737’s to fix fuselage issues will impact near-term deliveries and production. Photo courtesy of Boeing
Boeing on Wednesday cut plans for deliveries of its 737 Max jets as it reported third-quarter losses.
The aircraft manufacturer said it would cut deliveries to 375-400 planned earlier this year after it identified “a supplier non-conformance” on the aft pressure bulkhead section of certain 737 airplanes. Advertisement
“This is not an immediate safety of flight issue and the in-service fleet can continue operating safely,” Boeing said in a statement on its quarterly earnings.
The reduction comes after Boeing in April that as it worked through “supply chain disruptions” it planned to deliver 400-450 of the 737 planes during 2023 after they were grounded following crashes in 2018 and 2019, causing cancellations to exceed new 737 orders in 2020.
It said, however, that suppliers were continuing with planned increases with the company still planning to reach its goal of producing 38 planes for months by then end of 2023 with plans to ramp up to 50 per month in 2025-2026.
Boeing said Wednesday that the 787 program is transitioning to five per month with plans to increase production to ten per month in the 2025-2026 timeframe and expected to deliver 70-80 of the planes in 2023. Advertisement
During the third quarter of 2023, Boeing said it had 398 net orders for commercial aircraft.
The company reported a third-quarter net loss of $1.6 billion, which it said was impacted by “unfavorable defense performance” and lower 737 aircraft deliveries. Boeing’s net loss for the first nine months of 2023 was $2.2 billion.
Third-quarter revenues were $18.1 billion, a 13% increase over the same quarter in 2022. For the first nine months of 2023 revenues were $55.7 billion, up 20% over the same period in 2022.
“We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term,” said Boeing CEO Dave Calhoun in a statement. “We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand.”
In his written message to Boeing employees Calhoun said, “To finish the year strong and head into 2024 well positioned, it is important we continue to improve operational performance and drive stability in our supply chain so we can meet our customer commitments. Across our key markets, demand for our products and services continues to be strong. That demand will underpin our recovery, but it’s on us to perform.” Advertisement
