Boeing reported a third-quarter loss of US$6.17 billion On Wednesday as the company waited for striking factory workers to decide on a new contract proposal. The prolonged strike has disrupted production for nearly six weeks.
The company reported an losses of $10.44 per share versus losses of $10.34 expected, while revenue was reported at US$17.84 billion versus $20.03 billion expected.
Union Vote Amid Major Losses
Members of the International Association of Machinists and Aerospace Workers cast their votes on Wednesday on a proposed contract offering a 35% pay increase over four years.
The outcome will determine whether the strike, which began on 13 September, will end.
New Leadership and Strategic Shift
The strike marks a significant early challenge for Boeing's new CEO, Kelly Ortberg, who took over in August.
In his first address to investors, Ortberg outlined a plan to steer Boeing back to profitability, noting that, "Going forward, we will be focused on fundamentally changing the culture, stabilising the business, and improving program execution, while setting the foundation for the future of Boeing."
He stressed that management must reconnect with the workforce to prevent similar disruptions in the future, calling for more direct involvement on factory floors.
Ortberg also highlighted Boeing's existing strengths, such as a $500 billion backlog of aircraft orders.
However, he acknowledged the company's challenges, including eroded trust, substantial debt, and lapses in performance that have disappointed customers.
Financial Struggles Continue
Boeing's third-quarter losses reached $6.17 billion as the company burned through nearly $2 billion in cash, further weakening its financial position.
Chief Financial Officer Brian West cautioned that Boeing would continue to burn cash until 2025, though at a reduced rate.
The company's shares dropped by 1.8% on Wednesday, reflecting ongoing investor concerns.
Boeing's fortunes have been in decline since the crashes of two 737 Max jets in 2018 and 2019, which resulted in the deaths of 346 people. More recently, safety concerns resurfaced when a panel detached from a Max during an Alaska Airlines flight in January.
At the close on (AEDT) Thursday October 24, Boeing stock price (BA) was US$157.06, experiencing a decrease of 1.8% from the previous day. The stock saw a day low of US$146.02 and a day high of US$163.44. It has a market cap of US$96.78 billion. After hours, it was trading around US$157.49 a gain of around 0.43 points or 0.3%.