Boeing shares plummet in 2024
As Boeing finishes a demanding year, its share value is declining significantly into 2024. With a 32% drop in shares, a Reuters analysis indicates that the US aircraft manufacturer is on route to be the largest loser in the Dow Jones Index in 2024.
The study starts in the beginning of 2024 when Boeing’s shares were valued at $257.50. But soon after with the Alaska Airlines Boeing 737 MAX 9 midair blowout disaster, everything spun out of hand and Boeing essentially underwent a free fall for some considerable length of time.
Conversely, European aircraft manufacturer Airbus had an 11% increase in share value while the benchmark S&P 500 increased over 23%, as Reuters notes.
The damage on Boeing’s reputation is so great that even the most recent fatal aircraft crash of Jeju Air Boeing 737-800 affected the company’s stock even before the precise cause of the disaster is found.
Difficult year
Saying that 2024 was a difficult year for Boeing would be to understate. From a well-publicized incident involving its best-selling aircraft and rigorous FAA rules to supply-chain problems influencing aircraft manufacture and a crippling workers’ strike, the plane manufacturer continued juggling several problems.
It all began with the infamous Alaska Airlines Boeing 737 MAX 9 midair blowout event, which once more begged concerns about Boeing’s manufacturing methods. Although all crew members and passengers survived the tragedy, Boeing’s complete year was essentially shaped by the circumstances of the catastrophe.
The Federal Aviation Administration limited the MAX aircraft’s monthly production to 38 a month as industry experts, airlines, and world media concentrated on Boeing’s defective manufacturing methods. Given the state of the worldwide supply chain right now, Boeing has not been able to reach even that goal, though.
As faith in Dave Calhoun, the then-CEO, declined, the corporation also experienced a leadership crisis that resulted in a significant upheaval in the higher levels of management. Finding a successor was difficult even as Calhoun chose to resign from his post.
At last, following a protracted search, ex-Rockwell Collins executive Kelly Ortberg—with more than three decades of industry knowledge—was selected to run the business.
Ortberg struck the ground running trying to mend the damaged corporation, including a visit to Spirit AeroSystems’ facilities in Wichita. There wasn’t much time for him to settle in.
But a nearly two-month strike beginning in September saw more than 33,000 machinists leave their tools in demand of improved pay scales and benefits. This dealt a major setback to the business, already struggling with declining client confidence and manufacturing problems.
The strike ended in early November when the International Association of Machinists and Aerospace Workers accepted the company’s fourth formal offer, which promised a 38% wage increase. Industry analysts, however, claim that Boeing paid upwards of $5 billion for the entire ordeal.
Boeing’s problems were exacerbated and its brand and image suffered as whistleblowers claimed dubious labor practices in its facilities during all of this.
Picking up the pieces
Boeing looks to be covering lost ground, hence it will be praying for an uneventful 2025. Its most pressing needs are to progressively reach pre-strike levels and bring its diverted aircraft production back on track before raising aircraft output even more.
Most likely on top of its to-do list for this year are keeping an eye on its finances to make sure it doesn’t bleed more money needlessly and rebuilding trust with consumers and enhancing its working culture. Here’s wishing Boeing all the fortune for 2025!