Boeing Posts Losses for Fourth Quarter, Year

Company says outlook is improving with production levels expected to rise.

Boeing has experienced difficulty producing its 737 MAX quickly enough to keep up with demand. [Credit: Shutterstock]

Boeing Co. (NYSE: BA) reported a fourth-quarter loss but said it planned to build and deliver more aircraft this year, and continue to increase production and deliveries in the following years through 2025 and 2026.

The company’s net loss for the quarter totaled $663 million, or $1.06 per share, compared with a loss of $4.16 billion, or $7.02 per share, a year earlier. Revenue grew to $19.98 billion from $14.79 billion for last year’s fourth quarter.

For the full year, the net loss increased to $5.05 billion, or $8.30 per share, from $4.29 billion, or $7.15 per share, during the same period in 2021. Revenue for the year rose 6.9 percent to $66.61 billion from $62.29 billion.

Boeing benefited from an increase in aircraft orders last year as airlines recovered following the downturn in travel resulting from the pandemic. However, the company has had a difficult time increasing aircraft production to keep up with orders due in part to supply chain problems.

"We had a solid fourth quarter, and 2022 proved to be an important year in our recovery," said Dave Calhoun, Boeing’s president and CEO. "Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond. We are investing in our business, innovating and prioritizing safety, quality, and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength," Calhoun said.

Boeing said 737 production is stabilizing at a rate of 31 aircraft per month, and it expects to increase to 50 per month by 2025 or 2026. Production of the 787 “continues at a low production rate with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe,” the company said.

During the quarter, the company said it received orders for 376 aircraft, including an order from United Airlines for 100 737 MAX aircraft and 100 787s. Boeing said its Commercial Airplanes operation delivered 152 aircraft during the quarter, with a backlog totaling more than 4,500 airplanes valued at $330 billion.

Jonathan Welsh is a private pilot who worked as a reporter, editor and columnist with the Wall Street Journal for 21 years, mostly covering the auto industry. His passion for aviation began in childhood with balsa-wood gliders his aunt would buy for him at the corner store. Follow Jonathan on Twitter @JonathanWelsh4

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