Boeing has reported significant quarterly losses, with new CEO Kelly Ortberg acknowledging the need for a fundamental transformation, according to a report by Chris Isidore for CNN. Ortberg, who took over in August, stated that the company’s challenges are extensive and will take time to address. Boeing is grappling with cultural issues, significant debt, and lapses in performance, which have eroded trust and disappointed customers. Ortberg emphasised the necessity of changing the company’s culture, stating it requires more than superficial efforts.

Boeing’s net loss soared to $6.2 billion, compared to $1.6 billion a year ago. The commercial airplane division, already troubled, suffered a $4 billion operating loss, partly due to a strike by 33,000 employees. However, the strike only impacted the final two weeks of the quarter. The defence and space sector, unaffected by the strike, also reported a $2.4 billion operating loss. The losses include a $3 billion charge due to delays in the 777X jet and a $2 billion charge related to issues with several defence programs, including the Starliner spacecraft.

Boeing warned investors of continued financial challenges, forecasting negative cash flow until at least 2025, even if the strike concludes soon. The company is working to stabilise operations and improve execution across its divisions.

Read More: https://www.cnn.com/2024/10/23/investing/boeing-losses