Problems in the armaments business put the US aircraft manufacturer Boeing deep into the red again in the third quarter. Above all, increased costs and technical problems with the tanker aircraft for the US Air Force, the presidential aircraft Air Force One, a stealth drone and a training aircraft led to a quarterly loss of 3.3 billion US dollars (around 3.3 billion euros), as Boeing reported on announced Wednesday in Arlington. A year earlier, the minus had amounted to just $ 132 million.
“Turnarounds take time,” announced Boeing boss Dave Calhoun, referring to the ongoing crisis at Airbus rivals. “But I have faith in our team and the actions we are taking going forward,” the CEO said in a memo to employees. Boeing has been struggling with new problems since two planes in its important 737 Max model series crashed due to technical errors, in which a total of 346 people died in 2018 and 2019.
Not only the armaments division, but also the business with passenger and cargo aircraft for commercial aviation remained in the red in the third quarter – although sales here grew by 40 percent year-on-year thanks to significantly higher delivery figures. Across the group, revenues increased by only four percent to almost 16 billion dollars. The reason was the armaments and space division, whose revenues collapsed by a fifth to 5.3 billion dollars.
The background to the problems also includes an order that Boeing 2018 under ex-boss Dennis Muilenburg with the former US President donald trump agreed for the construction of the new Air Force One. Muilenburg had promised a good price after Trump’s attacks, but the costs got out of hand. In April, Calhoun acknowledged the deal resulted in billions in charges and Boeing “probably” shouldn’t have taken it. The losses in the most recent quarter are also due not least to the agreed fixed prices in the armaments business, said the Boeing boss now.
Overall, Boeing’s quarterly figures clearly missed the average expectations of industry experts. After the start of trading, the share rose by a good one percent. With a major order from the airline Alaska Air for 52 Boeing 737 Max, there was at least a little positive news on Wednesday. In recent years, Boeing has repeatedly suffered billions of dollars in losses, mainly due to problems with its passenger aircraft. The European competitor Airbus had already snatched the position as the world’s largest aircraft manufacturer from the former world market leader in 2019.
Alaska Airlines orders 52 Boeing 737 Max – most in the long version
The US aircraft manufacturer Boeing has won a major order for its 737 Max medium-haul jet. The airline Alaska Air ordered 52 machines of the series, 42 of them in the long version 737 Max 10, the US group announced shortly after the publication of a billion-dollar loss on Wednesday in Seattle. The long version is still awaiting approval – and it is by no means certain. If certification is not achieved by the end of the year, the aircraft will need a modern cockpit alarm system, which it does not currently have. However, the US Congress can still change the law.
With the new regulation, lawmakers responded to the fatal crashes of two 737 Max jets in 2018 and 2019, which resulted in the model being grounded for more than a year and a half worldwide. After technical improvements, the bans have been gradually lifted in key parts of the world since 2020.
According to insiders, approval of the long version is likely to be delayed until at least summer 2023. The Acting Director of the FAA, Billy Nolen, wrote this to Republican Senator Roger Wicker, the Bloomberg news agency reported in early October, citing the document in its possession. This time forecast comes from Boeing itself. The aircraft manufacturer did not want to comment on the letter.
Boeing shares were initially higher on the NYSE but are unable to hold onto the gains. In the meantime, the paper has temporarily fallen by 8.91 percent to $133.58.
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