Boeing reports $2.4 billion net loss, postpones 777X to 2022
Boeing reported a $2.4 billion loss for the second quarter of 2020. The manufacturer announced it would slow down production further due to the impact of Covid-19 on air transport. The first delivery of the 777X is officially postponed to 2022.
Revenues for the Commercial Aircraft division were impacted the most, as they slumped by 65% to $1.63 billion. Deliveries fell from 90 aircraft in the second quarter of 2019 to 20 this quarter. The Defense, Space and Security division barely grew in revenue, generating $6.59 billion, up from $6.58 a year before.
To alleviate its losses, the manufacturer, which already announced plans to cut 16,000 jobs, warned that it would have to “further assess the size of [its] workforce,” without giving further details. The production rate of the 777 has been revised downwards, from 3 to 2 per month, and that of 787 to 6 per month against 7 previously. Rumors regarding the postponement of the 777X were confirmed, with the first delivery set to happen a year later than expected, in 2022.
The ramp-up of the Boeing 737 MAX production, which resumed in May 2020, will be “slower than expected”, with the goal output of 31 aircraft to be reached in early-2022 instead of 2021. Production rates for the 767 and 747 programs will remain unchanged.
"We are taking the right action to ensure we're well-positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing,” commented Boeing President and Chief Executive Officer Dave Calhoun. “Air travel has always proven to be resilient - and so has Boeing."
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