SEATTLE- Boeing Corporation announced significant financial challenges ahead of its fourth quarter 2024 earnings report, revealing projected revenue of $15.2 billion and a projected GAAP loss per share of ($5.46).
The company’s operating cash flow is expected to be $(3.5) billion, with cash and marketable securities totaling $26.3 billion at the end of the quarter.
Boeing Fourth Quarter Report
The aerospace manufacturer highlighted critical financial impacts stemming from several factors, including a work stoppage and International Association of Machinists (IAM) agreements, defense program costs and workforce reduction costs.
Boeing executives emphasized continued efforts to stabilize business operations despite near-term challenges.
The commercial aircraft segment will experience significant financial difficulties, with pre-tax profit charges of $1.1 billion specifically on the 777X and 767 programs.
The 777X program alone will result in a pretax charge of $0.9 billion, reflecting the high labor costs associated with finalizing the IAM deal. Despite these challenges, Boeing maintains its projection for first delivery of the 777-9 in 2026.
According to official data, there are Order of 481 units for the 777X from over 13 operators and some from unidentified customers, as of January 2025. Here is the exact table showing orders by airline:
Here is the table:
| Customer Name | Country | Region | Model series | Engine | Unfulfilled orders |
|---|---|---|---|---|---|
| Air India | India | South Asia | 777X | GE | 10 |
| All Nippon Airways Co., Ltd. | Japan | East Asia | 777X | GE | 17 |
| ANA Holdings Inc. | Japan | East Asia | 777X | GE | 1 |
| British Airways | United Kingdom | Europe | 777X | GE | 18 |
| Cargolux Airlines International | Luxembourg | Europe | 777X | GE | 10 |
| Cathay Pacific Airways | China | East Asia | 777X | GE | 21 |
| Emirates | United Arab Emirates | Middle East | 777X | GE | 205 |
| Ethiopian Airlines Group | Ethiopia | Africa | 777X | GE | 8 |
| Etihad Airways | United Arab Emirates | Middle East | 777X | GE | 25 |
| Lufthansa | Germany | Europe | 777X | GE | 27 |
| Qatar Airways | Qatar | Middle East | 777X | GE | 94 |
| Silk Way West Airlines | Azerbaijan | Central Asia | 777X | GE | 2 |
| Singapore Airlines | Singapore | Southeast Asia | 777X | GE | 31 |
| Unidentified customer(s) | Unidentified | Unidentified | 777X | GE | 12 |
| Total | 481 |
Other verticals
The Defense, Space and Security division expects pretax profit charges of $1.7 billion on several programs, including KC-46A, T-7A, Commercial Crew, VC-25B and MQ-25.
The KC-46A program will absorb a pre-tax charge of $0.8 billion, primarily due to increased manufacturing costs and IAM work stoppage impacts. The T-7A program faces a pre-tax charge of $0.5 billion, due to higher estimated production costs for future batches.
Kelly Ortberg, Boeing’s chairman and CEO, acknowledged the challenges while highlighting positive steps, including the IAM deal and successful capital raising to improve the company’s balance sheet. Ortberg emphasized the company’s commitment to restarting production of the 737, 767 and 777/777X models and remains focused on building a new future for Boeing.
The company’s commercial segment in the fourth quarter is expected to generate revenue of $4.8 billion with an operating margin of (43.9) percent. Similarly, the Defense, Space and Security segment expects revenue of $5.4 billion and an operating margin of (41.9) percent.
Resumption of 777X test flights
Boeing resumed testing of its 777X widebody on January 15, 2025, marking the first flight since the test fleet was grounded in August due to a critical engine mounting structure failure. The initial certification flights were aborted just five weeks after they began.
Federal Aviation Administration (FAA) personnel were not present during Thursday’s test flight. The development comes as Boeing continues to address technical challenges with the 777X program, which is the successor to the commercially successful 777 long-haul airliner.
Originally scheduled for delivery to Qatar Airways in 2020, the 777X program has experienced significant delays. The first delivery of the 777-9 is now scheduled for 2026, with smaller versions of the 777-8 and freighter expected later in the decade.
End of era: end of 777-300ER production
The draft reported that Boeing has potentially completed production of its legendary 777-300ER aircraft, with only one final delivery recorded in 2024.
The 777-300ER, described as “the best-selling widebody of all time,” has enjoyed nearly two decades of production since its debut in 2004.
Despite Boeing Commercial Airplanes CEO Stephanie Pope announcing the resumption of production on several aircraft lines, the company’s 777 program is now focused exclusively on the 777X variant, signaling a strategic shift in airline strategy. Boeing production.
Featured image by Clément Alloing | Flickr
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