Boeing Reports Major Financial Losses Amid Q4 2024 Challenges
Boeing Corporation has announced significant financial difficulties ahead of its fourth-quarter 2024 earnings report, projecting a revenue of $15.2 billion and a GAAP loss per share of ($5.46). The company also reported a negative operating cash flow of ($3.5) billion, with total cash and marketable securities standing at $26.3 billion at the end of the quarter.
These financial struggles are primarily driven by labor disputes, defense program charges, and production challenges across various Boeing aircraft programs.
Boeing Q4 Financial Report: Key Highlights
Boeing faces multiple financial pressures, including:
- $1.1 billion in pre-tax charges for the 777X and 767 programs
- $0.9 billion charge for the 777X, mainly due to labor costs associated with the IAM (International Association of Machinists) agreement
- $1.7 billion in pre-tax charges across its Defense, Space & Security division
- Workforce reduction costs impacting overall expenses
Despite these setbacks, Boeing remains committed to stabilizing its business and continuing aircraft production, including the 777X, 737, and 767 models.
Boeing 777X Program: Orders and Challenges
The 777X program has been a major focus for Boeing, with significant financial investments and growing orders from airlines worldwide.
As of January 2025, Boeing has 481 unfilled orders for the 777X from over 13 airlines and unidentified customers. The breakdown of orders is as follows:
| Customer Name | Country | Region | Unfilled Orders |
|---|---|---|---|
| Air India | India | South Asia | 10 |
| All Nippon Airways (ANA) | Japan | East Asia | 17 |
| ANA Holdings Inc. | Japan | East Asia | 1 |
| British Airways | UK | Europe | 18 |
| Cargolux Airlines | Luxembourg | Europe | 10 |
| Cathay Pacific | China | East Asia | 21 |
| Emirates | UAE | Middle East | 205 |
| Ethiopian Airlines | Ethiopia | Africa | 8 |
| Etihad Airways | UAE | Middle East | 25 |
| Lufthansa | Germany | Europe | 27 |
| Qatar Airways | Qatar | Middle East | 94 |
| Silk Way West Airlines | Azerbaijan | Central Asia | 2 |
| Singapore Airlines | Singapore | Southeast Asia | 31 |
| Unidentified Customers | Unknown | Unknown | 12 |
| Total Orders | 481 |
Boeing expects to deliver the first 777-9 by 2026, after multiple delays caused by design changes, regulatory concerns, and supply chain issues.
Defense, Space & Security Segment Losses
Boeing’s Defense, Space & Security division has reported $1.7 billion in pre-tax charges across key programs, including:
- KC-46A tanker: $0.8 billion charge due to manufacturing cost increases and IAM work stoppages
- T-7A Red Hawk trainer jet: $0.5 billion charge caused by rising production costs
- Additional losses from the Commercial Crew, VC-25B, and MQ-25 programs
Despite these challenges, Boeing’s CEO Kelly Ortberg emphasized efforts to stabilize finances through capital-raising measures and strategic production planning.
777X Test Flights Resume After Long Delay
Boeing has resumed 777X test flights as of January 15, 2025, following a five-month grounding due to critical engine mounting issues. The Federal Aviation Administration (FAA) was not present for the test flight, indicating that regulatory hurdles remain before full certification.
Originally planned for delivery to Qatar Airways in 2020, the 777X program has faced major setbacks, with deliveries now pushed to 2026 for the 777-9 and later for the smaller 777-8 and freighter variants.
End of Production for the Iconic 777-300ER
According to The Air Current, Boeing has likely ended production of the 777-300ER, its best-selling widebody aircraft, with only one final delivery recorded in 2024.
Since its launch in 2004, the 777-300ER has been a commercial success, widely used by major airlines worldwide. With Boeing now focusing exclusively on the 777X program, the end of the 777-300ER marks a major shift in its production strategy.
Boeing’s fourth-quarter 2024 financial struggles reflect broader industry challenges, including rising labor costs, production setbacks, and regulatory delays. While the company remains committed to its 777X program and defense projects, it faces significant obstacles in regaining financial stability.
The resumption of 777X test flights and ongoing aircraft deliveries indicate progress, but Boeing must navigate supply chain disruptions and cost pressures to ensure long-term success. The end of the 777-300ER era also signifies a shift in Boeing’s strategy as it prepares for the future of widebody aviation.
