Safety crisis: Boeing loses almost $1bn every month in 2024

Boeing lost nearly a billion dollars a month in 2024, as it grappled with a safety crisis, quality control issues and a damaging strike, a BBC report stated. The plane manufacturer lost $11.8bn across the year, its worst result since 2020, when the Covid pandemic grounded the aviation industry.

In the three months to the end of December, when strikes affected the business, it lost $3.8bn. As well as suffering from well-publicised problems at its commercial aircraft unit, Boeing also struggled with issues affecting several defence programmes, BBC stated

Kelly Ortberg, Chief executive said the company was focused on what he called the “fundamental changes” needed to restore its fortunes and restore trust.

Boeing has had a dreadful year by any measure. In January 2024, a door panel fell off a brand new 737 Max shortly after take-off, leaving a gaping hole in the side of the plane. Investigators said it had not been bolted on properly.

The incident highlighted serious quality control failings at the company and its main supplier, Spirit Aerosystems. It also reignited concerns about Boeing’s attitude towards safety.

Boeing had been trying to emerge from the shadow of two high-profile crashes involving a different 737 model, the Max 8, in 2018 and 2019, which killed 346 people.

The latest incident forced Boeing to curb production, as regulators called for changes on the factory floor, and demanded the implementation of a comprehensive safety and quality control plan.

In August, Boeing appointed its new chief executive Ortberg, a veteran engineer who was brought in to steady the ship.

But he immediately faced a serious challenge.

A strike by 33,000 workers, most of them in Boeing’s heartlands around Seattle brought two of its most important factories to a halt, and halted production of the 737 Max, the 777 and the 767 freighter.

The seven-week stoppage, which began in September, reflected deep seated resentment among employees over their pay and retirement provisions. The dispute was settled in early November, but it cost the company billions.