Boeing CEO Promises Change as Quarterly Loss Tops $6 Billion

23.10.2024 - 16:05 / skift.com / Meghna Maharishi / Kelly Ortberg

Boeing CEO Kelly Ortberg said Wednesday he believes the plane maker can be “an aerospace leader again” as the company faces slew of issues with its aircraft programs and a machinist strike. 

In prepared remarks ahead of Boeing’s third-quarter earnings call, Ortberg outlined a broad plan to restore the plane maker’s profitability, culture and business. 

“Clearly, we are at a crossroads: The trust in our company has eroded,” Ortberg said. “We’re saddled with too much debt. We’ve had serious lapses in our performance across the company which have disappointed many of our customers.”

Boeing reported a third-quarter loss of $6 billion, its largest since the start of the pandemic in 2020. The company also said it ended the third quarter with $10.5 billion in cash and marketable securities. 

The commercial airplanes unit had a third-quarter loss of over $4 billion, a significant change from the $678 million loss reported last year. 

Ortberg said Boeing needs to change its culture, stabilize its business, implement its safety and quality plan and focus on the future. He also acknowledged that it would take time for Boeing to get back on track. 

“Boeing is an airplane company and at the right time in the future we need to develop a new airplane. But we have a lot of work to do before then,” Ortberg said.

The ongoing machinist strike is costing Boeing roughly $1 billion a month, according to estimates from S&P Global. Earlier this month, Ortberg told staff that the company would lay off 10% of its workforce and delay the first deliveries of the 777X to 2026. 

Boeing posted a new proposal to the machinists on Saturday which included a 35% pay raise over four years, a $7,000 ratification bonus, and annual bonuses. However, the proposal does not include restoring pensions, a key demand from many union members. 

Votes on the new contract are expected to come late Wednesday night.  

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