Boeing reports $109 million loss as 787 face issues

AFP News Agency

27th Oct, 2021. 08:28 pm
Boeing uncovers another defect on 787 Dreamliner

Photo Courtesy : Reuters

NEW YORK: Boeing’s troubles with the 787 plane dragged down its financial results in the third quarter, resulting in another loss, as the aviation giant struggles to fully recover from earlier stumbles.

Boeing reported a loss of $109 million, compared with a loss of $449 million in the year ago.

The company announced $1 billion in new expenses connected with the 787 Dreamliner, with $183 million coming in the third quarter.

A second charge of $185 million connected to the delayed test flight of the unmanned CST-100 Starliner capsule also hit the results.

“We are driving stability across our operations, investing in our future and positioning our teams to deliver for our customers, as the market recovers,” Boeing chief executive David Calhoun said.

Boeing halted deliveries of the 787 in May; following a series of issues with the plane. Earlier this month, the company said it would rework undelivered 787s after being notified by a supplier that some parts were not manufactured properly.

“The company continues to focus on 787 production resources and on conducting inspections and rework and continues to engage in detailed discussions with the FAA regarding required actions for resuming delivery,” Boeing said, adding that it is currently producing two 787 jets/month.

Revenues rose 8 per cent to $15.3 billion, reflecting the benefit from returning deliveries of the 737 MAX. The jet was grounded for 20 months; following two fatal crashes that plunged the company into a crisis that still reverberates.

Earlier this month, a US federal grand jury charged a former Boeing chief test pilot with misleading aviation regulators during the certification process for the 737 MAX.

Meanwhile, the shares of the company rose up to 0.6 per cent to $211 in pre-market trading.