Boeing has announced its financial results for the final quarter and full year of 2024, and the figures paint a challenging picture for the aerospace giant. The company posted a 31% decline in Q4 revenues, amounting to $15.2 billion, with a net loss of $3.8 billion. The full-year performance was similarly concerning, with revenues totaling $66.5 billion, reflecting a 14% year-over-year decline, and net losses deepening to $11.8 billion, compared to $2.2 billion in 2023.
Aviation Turbulence: Declining Deliveries and Workforce Challenges
Boeing’s commercial aircraft segment was hit particularly hard, delivering just 57 aircraft in Q4—a stark contrast to the 157 aircraft delivered in Q4 2023. This 55% revenue drop left the division with only 348 deliveries for the entire year, down from 528 the previous year. Several factors contributed to this decline, including prolonged labor disputes with the International Association of Machinists and Aerospace Workers, production setbacks, and workforce reductions.
Despite these difficulties, Boeing recorded 204 net orders in Q4, including a major deal from Pegasus Airlines for 100 Boeing 737 MAX 10s (with 100 options) and flydubai’s firm order for 30 Boeing 787-9s.
Defense and Services: Mixed Performance
Boeing’s Defense, Space & Security division also faced a 20% revenue decline, generating $5.4 billion in Q4. The company continues to navigate significant program charges in this segment, impacting profitability. However, there was a silver lining: Boeing’s Global Services division saw a 6% revenue increase to $5.1 billion, benefiting from strong aftermarket sales and increased demand for commercial support services.
Leadership Perspective: Rebuilding Trust and Operations
Boeing’s President and CEO Kelly Ortberg acknowledged the financial setback but reaffirmed the company’s commitment to restoring stability and customer confidence.
“My team and I are focused on making the fundamental changes needed to fully recover our company’s performance and restore trust with our customers, employees, suppliers, investors, regulators, and all others who are counting on us,”Ortberg stated in a company release.
2025 Outlook: A Path to Recovery?
Boeing aims to ramp up production in 2025 to meet growing demand and clear its $521 billion backlog, which includes over 5,500 commercial aircraft valued at $435 billion. The company has outlined plans to gradually increase 737 MAX production rates, while its 787 program in South Carolina will see output rise from five aircraft per month. Additionally, the long-delayed 777X program has resumed FAA certification testing, with the first 777-9 delivery targeted for 2026.
While Boeing’s commercial order book remains strong, it faces ongoing challenges in the defense and space sector, requiring strategic adjustments and cost controls to maintain competitiveness.
Final Thoughts
Boeing enters 2025 under intense scrutiny from investors, regulators, and customers. With efforts underway to streamline production, resolve labor disputes, and improve financial stability, the company hopes to regain its footing in a highly competitive aerospace market. Whether these initiatives will be enough to reverse the downturn remains to be seen—but with an industry-leading backlog and ongoing demand for commercial jets, Boeing still has a chance to turn the tide in the coming years.
Source: Boeing
Photo Credit: Boeing
Edited: Katerina Urbanova
