NEW YORK (AFP) – Troubled aviation giant Boeing reported a first-quarter loss of USD343 million yesterday, reflecting recent safety troubles that have slowed production and deliveries.
Boeing said it tempered production in the 737 programme following a January near-catastrophic incident on an Alaska Airlines jet. The company is implementing a “comprehensive action plan” following a federal audit of the programme, Boeing said.
The first-quarter loss, which was somewhat smaller than analysts expected, compared with a loss of USD414 million in the year-ago period. Revenues fell 7.5 per cent to USD16.6 billion.
Boeing’s commercial airplane business suffered an operating loss as the company pointed to unspecified “customer considerations” following a temporary grounding of the 737 MAX 9.
Boeing’s defence space and security division reported operating profitability in spite of losses on “certain fixed-price development programmes,” the company said in its press release.
“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” said Chief Executive Dave Calhoun, who will step down at the end of 2024.
The extra time taken “will position us for a stronger and more stable future,” Calhoun said.
