Boeing reports $12 billion loss for the year 2020
Boeing reported that the company lost close to USD 12 billion in the year 2020. "2020 was a historically challenging year for our world, for our industry (and) for our business," said Boeing CEO Dave Calhoun.
Demand for aircraft has gone significantly low as airlines are facing financial difficulties due to the challenges imposed with the effect of COVID-19 in the aviation industry.
Boeing has struggled massively with the 737MAX crises along with further delays in the completion of the 777X program.
The 737MAX was grounded worldwide in late 2019 and production of the aircraft halted in January 2020 after a recurring failure in the MCAS system caused two fatal accidents involving 346 deaths.
After modification and several tests, FAA cleared the aircraft in November 2020 while EASA did in January 2021. Boeing was fined USD 2.5 billion for fraud.
Boeing has further back lodged 118 of their new Boeing 777X orders leaving the 777X with 191 firm orders.
The 777X was initially planned to be delivered to the airlines by 2020-2021 however the program has been further delayed to 2023. Boeing expects that they may get further reductions in orders due to the delays they are facing.
Boeing is also struggling to resume deliveries of the 787 Dreamliner at the end of the first quarter. This is a major hit for the giant aerospace manufacturer as Boeing reported record earnings and record revenue that topped USD 100 billion just in 2018.