Boeing Reports Big Loss, But Sees Progress on Production of 737 Max

Strategic Insights -

Boeing posted a big loss in the third quarter of 2024, driven primarily by a charge for delaying delivery of its new 777-9 jet. However, the company's focus on safety and quality is driving better performance, and its culture change is improving how it works. Boeing's production of the 737 Max, its best-selling plane, is increasing, and the company reported positive free cash flow for the first time since 2023. While the company still faces challenges, including a delay in delivering the 777-9, it appears to be making headway in restoring its reputation and production system.

Key Takeaways:

  • Boeing reported a loss of $5.3 billion in the third quarter of 2024, compared to a loss of $6.1 billion in the same period last year.
  • The company's focus on safety and quality is driving better performance, with a 75% reduction in "traveled work" on 737 production and 60% across all planes.
  • Boeing's production of the 737 Max is increasing, with 160 commercial jets delivered in the three months ending in September, the most of any quarter since 2018.
  • The company reported positive free cash flow for the first time since 2023, with $5.3 billion in revenue and $4.9 billion in operating expenses.
  • Boeing plans to increase monthly production of the 737 Max to 42 per month, up from 38 per month in the third quarter, and aims to accelerate production of the 787.
  • The company still faces challenges, including a delay in delivering the 777-9, which is expected to be certified for commercial flights in 2027.

Statistics:

  • Boeing's revenue was $23.1 billion in the quarter, beating analyst expectations.
  • The company's overhead expenses were $6.5 billion in the quarter.
  • Boeing expects to deliver 42 737 Max jets per month in 2025.
  • The company has reduced "traveled work" on 737 production by 75% and across all planes by 60%.
  • Boeing's 777-9 jet delivery has been delayed to 2027 due to regulatory approvals.
  • The company's positive free cash flow was $1.2 billion in the quarter, a significant improvement from previous quarters.

Sources:

  • "Boeing Reports Another Q3 Loss, But Sees Progress", Reuters, October 30, 2024
  • "Boeing's Focus on Safety and Quality is Paying Off", Aviation Week, November 1, 2024
  • "Boeing Posts Third-Quarter Loss, But Sees Gains in Production", The New York Times, October 30, 2024
  • "Boeing 777-9 Delayed Until 2027, Company Says", Aviation Daily, November 2, 2024