Boeing no longer takes off. The American aircraft manufacturer once again announced a heavy quarterly loss this Wednesday, despite a strong rebound in its deliveries, due to a significant load on its 777X twin-aisle program, which was very late.
The net loss reached $5.34 billion between July and September, widened by a charge of $4.9 billion before taxes. This is not the first time that Boeing has suffered from the 777X, its new wide-body twin-jet aircraft supposed to be the flagship of its fleet.
“Totally out of our control”
It had notably recorded a pre-tax charge of 3 billion dollars in the third quarter of 2024, partly attributed to this program, and one of 6.5 billion from the fourth quarter of 2020 totally attributed to this program. Other costs, not broken down between the programs concerned, have also been necessary over the years.
The 777-9, the first version of the program which provides for three, was presented in 2013 and was due to enter service in 2020, but it is still not certified by the civil aviation regulator (FAA). For many months, management had assured that the first deliveries would take place in 2026, but press information at the beginning of October suggested a delay to 2027, accompanied by a charge between 2.5 and 4 billion.
Kelly Ortberg, boss of the group, confirmed this Wednesday in a message to employees: “Finalizing the certification program is taking longer than expected. (…) We now anticipate the first delivery of the 777-9 in 2027.”
During an audio conference with analysts, he assured that there were no problems with the structure or the engines. “The problem we have is with the certification process. (…) It’s totally out of our control,” he explained on CNBC, specifying that the budgetary paralysis which has lasted for three weeks had no impact at this stage.
According to the new financial director, Jay Malave, speaking during the audio conference, the program will generate positive cash flow from 2029 and the delay in entry into operation should lead to a shortfall of $2 billion in 2026. The giant is also scrapping for the certification of the 737 MAX 7 and MAX 10, now anticipated for 2026 with several years of delay.