Boeing Faces $355 Million Loss in First Quarter Amid Safety Concerns
Boeing announced on Wednesday that it suffered a loss of US$355 million in the first quarter due to falling revenue, highlighting the ongoing crisis the aircraft manufacturer is facing. The company is under increasing scrutiny over the safety of its planes and allegations of shoddy work from whistleblowers.
CEO David Calhoun acknowledged that Boeing is in a “tough moment” and emphasized that their focus is on addressing manufacturing issues rather than financial results. The recent incident involving a door plug blowing out of a Boeing 737 Max during an Alaska Airlines flight has raised concerns about the company’s safety standards.
The setback comes as Boeing was beginning to recover from the two deadly crashes of Max jets in 2018 and 2019, which claimed the lives of 346 people. The families of the crash victims are pushing for criminal charges against the company, accusing Boeing of violating terms of a settlement reached in 2021.
Despite the challenges, Calhoun expressed confidence in Boeing’s ability to bounce back. The company has been taking steps to improve manufacturing quality, including slowing down production to ensure safety standards are met.
While Boeing’s stock has taken a hit and the Federal Aviation Administration has increased oversight, industry analysts believe that Boeing’s strong market position and demand for its products will help it weather the storm. Despite significant losses in recent years, Boeing is not at risk of failing, according to experts.
Although Boeing’s first-quarter loss was better than analysts’ expectations, Moody’s downgraded the company’s debt rating due to the weak performance of its commercial-airplanes business. Boeing shares closed down three per cent following the news, marking a 34 per cent drop since the Alaska Airlines incident.