Development costs, strike hit Boeing's bottom line

Two Boeing Saab T-7A Red Hawk production representative jets. Boeing and the air force have signed a new agreement to better manage the programme. (Boeing)

Boeing continues to recover from a series of production and safety issues as well as last year's International Association of Machinists and Aerospace Workers (IAM) strike, Kelly Ortberg, president and CEO of Boeing, said in an earnings call on 28 January. The company has been methodically restarting factories following the strike and ensuring all employees are current on training and certifications before returning to work, Ortberg said. Boeing also completed a Federal Aviation Administration (FAA) safety management meeting during the fourth quarter of 2024, with the FAA reporting significant improvements that will enable the company to increase 737 MAX production beyond 38 aircraft a month, he added.

Boeing is focused on improving performance on development programmes, he continued, including actively managing contracts with customers. “We are very focused on creating stability within the EACs [estimates at completion], so we stop this quarterly drumbeat of cost growth. This means being more proactive and clear-eyed on the risks and our estimates to complete the projects,” Ortberg emphasised. He noted that Boeing had recently entered into a memorandum of agreement (MOA) with the US Air Force (USAF) on the T-7A jet trainer programme and was in talks to make changes to improve performance and delivery for the VC-25B presidential transport programme.

Ortberg expressed confidence in the future, noting that demand for Boeing's commercial and defence products and services was strong, with a backlog worth more than USD500 billion.

Fourth quarter