NEW YORK – Boeing concluded a bruising 2020 today with another unpleasant surprise: a US$6.5 billion (RM26.3 billion) hit from delays to its new 777X plane that exacerbated its annual loss.
The aerospace giant, which saw its revenues ravaged by the commercial airline downturn and a 20-month grounding of its 737 MAX model, now expects first deliveries of the wide-body 777X in late 2023, compared with the earlier timetable of 2022.
The accounting for the 777X prolongation pushed Boeing’s fourth-quarter loss to US$8.4 billion, plunging its tally for the whole year to US$11.9 billion in the red.
The past year “was a year of profound societal and global disruption that significantly constrained our industry”, said chief executive Dave Calhoun.
“The deep impact of the pandemic on commercial air travel, coupled with the 737 MAX grounding, challenged our results.
“I am proud of the resilience and dedication our global team demonstrated in this environment as we strengthened our safety processes, adapted to our market, and supported our customers, suppliers, communities and each other.”
Boeing reported a fourth-quarter loss of US$8.4 billion following the accounting of US$6.5 billion. Revenues fell 14.6% to US$15.3 billion.
It has now pushed back the 777X time frame at least three times.
When it delayed the programme in 2020, the firm said the prolongation reflected in part the need to incorporate lessons from the 737 MAX certification, as well as uncertainty about airline demand due to the downturn in travel from Covid-19.
It described similar dynamics today.
While Boeing’s results over the last two years were weighed down by the MAX grounding, the outlook for that programme has improved after commercial flights on the plane resumed late last year following a lengthy grounding due to two fatal crashes.
A full return in commercial plane travel is not expected until after 2021.
Boeing shares tumbled 3.2% to US$195.60 in pre-market trading. – AFP, January 27, 2021
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