United Kingdom
United States
Asia Pacific
Boeing warns of big quarterly losses after blowout incident
Boeing’s financial chief is warning shareholders to brace for a big first quarter loss.
CFO Brian West told at an investor conference Boeing’s commercial aircraft division’s operating profit margin would sink to around -20%.
Production work has slowed and extra costs are racking up due to extra scrutiny on the business following the Alaska Airlines blowout.
It would be its biggest loss margin for two years.
The losses are partially due to compensation due to its airline customers including Alaska Airlines.
Alaska’s CEO Ben Minicucci recently said the short grounding of 737 Max planes directly after the blowout incident will cost it about $150 million.
CFO West said ‘all the things we’re doing around the factory’ to meet stricter requirements is slowing production and adding to costs.
“There are changes that need to happen. There’s no doubt about it,” he said.
“We’re deliberately going slow to get this right.”
Boeing had initially planned to ramp up Boeing 737 Max production this year but that has been curtailed due to FAA audits of its production facilities.
Boeing posted a $41 million operating profit for its commercial aircraft unit in the last quarter with a slender 0.4% profit margin.
Related News Stories: Southwest phases Boeing Max 7 out of 2024 plans – TravelMole Boeing delivers first plane to China since 2019 – TravelMole Boeing flags new safety issue for Max 737 aircraft – TravelMole Boeing allows airline customer scrutiny at production facilities … Hawaii volcano erupts again Boeing slammed for dragging feet in NTSB investigation Boeing factory tour reopens American Airlines places aircraft orders with Airbus, Boeing and … Hundreds of flights canceled due to Boeing Max grounding … No UK airlines impacted by Boeing 737-9 Max grounding – TravelMole
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled