MIAMI – Boeing has reported a total revenue loss of $15.3bn in the fourth quarter of 2020, delaying the delivery of the first 777X to late 2023, a company press release states today.
According to its financial report, the company had major losses in operations (US$8.04bn), and cash flow (US$4bn), as well as a loss per share of US$14.65 and a net loss of US$8.4bn.
Commercial airplane revenue also decreased to US$4.7bn, mainly led by a COVID-19-driven lower wide-body delivery volume and 787 production issues, partially balanced by higher Boeing 737 deliveries and a lower 737 MAX customer consideration.
In regards to the results, Boeing said in the release that “the deep impacts of COVID-19 on commercial air travel, as well as the 737 MAX grounding, are reflected in our performance.”
CEO ‘Extremely Proud’ of Hard Work
In a message to employees, Boeing CEO Dave Calhoun lauded the company’s hard work during the COVID-19 pandemic:
“I’m extremely proud of the hard work and dedication of our team around the world, and I remain confident in our future. As we transform our business, we continue taking proactive action to reshape our infrastructure, streamline our overhead and organizational structure, rebalance our portfolio and investment mix, strengthen the health of our supply chain, and drive operational excellence into every corner of our enterprise.”
“Working together, we’ll drive fundamental, enduring change at our company to strengthen our culture, improve our performance, and ensure we’re more resilient, productive, and competitive for the long term,” Calhoun said.
Besides considering the past year as one of “profound societal and global disruption” that constrained the aviation industry, Calhoun also praised the return of the 737 MAX and customers’ confidence. “As we focus on supporting our customers in safely returning their fleets to service, we are pleased with the confidence our customers have placed in us and the airplane,” Calhoun stated.
Boeing 777X Delivery Status
The CEO also mentioned that, because of the challenges posed by the coronavirus crisis, the delivery of the first operating 777X has been pushed to late 2023.
Calhoun states, “This schedule, and the associated financial impact, reflects a number of factors, including an updated assessment of global certification requirements, our latest assessment of COVID-19 impacts on market demand, and discussions with customers with respect to aircraft delivery timing.”
We remain confident in the 777X and the unmatched capabilities and value it will offer our customers,” added the CEO.
Featured image: Boeing 777X. Luca Flores/Airways