Boeing reports $6 billion loss in latest quarter
The company is facing its first strike in 16 years and a six-year streak of losses. It was capped off by safety problems with its 737 Max model.
An Alaska Airlines Boeing aircraft.
The Boeing aerospace company on Wednesday reported a $6 billion loss for the third quarter of 2024. The announcement of the fiscal year results come just as unions vote on whether or not to accept the tentative agreement presented by the company to end the strike involving 30,000 workers.
These strikes, which have been affecting production lines, have been dragging on for six weeks. Employees are demanding improved working conditions and wage increases. It is the first strike to affect the company in 16 years. It comes after a series of issues that have affected the company in terms of its products’ reliability, especially the Boeing 737 Max.
The company's CEO, Kelly Ortberg, spoke this week to the company’s investors and told them there’s a need for "a fundamental cultural change in the company." To achieve this, he said, managers need to spend more time in the factories to know what's going on and "avoid festering problems and work better together to identify, fix and understand the root cause."
The company's management believes it has hit rock bottom and that this moment requires a complete "reset" of the internal workings. Many people have accused Boeing of falling into the woke policy trap after adopting DEI policies that have compromised user safety.
Ortberg has already announced large-scale layoffs and a plan to raise enough cash to avoid filing for bankruptcy. He has to convince federal regulators that Boeing is working on its safety culture and is prepared to ramp up production of the 737 Max, a crucial step toward raising much-needed cash.
However, Boeing has not had a profitable year since 2018 and the situation is about to get worse before it gets better. Before moving forward, the company will have to end the strike involving 30,000 workers. This Wednesday afternoon, Eastern time, the International Association of Machinists and Aerospace Workers will most likely reveal whether it will accept the company's agreement or whether the workers will continue to strike.
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