Boeing reports fresh losses driven by Dreamliner problems

Boeing has reported a full year loss of $4 billion for 2021, an improvement on the $14.1 billion the manufacturing giant lost in 2020.

The results were hit by $4.5 billion in charges during the fourth quarter related to the troubled 787 Dreamliner program.

The damage prevented a long-awaited return to positive cash flow fuelled by rebounding 737 Max deliveries.

Bowing 787 deliveries are expected to remain frozen for months as United States regulators review repairs and inspections over structural flaws in the jets.

Shares in Boeing fell 3.6 per cent on the array of charges and uncertainty over the Dreamliner.

“Last year was a rebuilding year for us as we overcame hurdles and reached key milestones across our commercial, defence and services portfolios.

“We increased 737 Max production and deliveries, and safely returned the 737 Max to service in nearly all global markets.

“As the commercial market recovery gained traction, we also generated robust commercial orders, including record freighter sales.

“Demonstrating progress in our overall recovery, we also returned to generating positive cash flow in the fourth quarter,” said David Calhoun, Boeing chief executive.

Boeing was previously hit with problems surrounding the 737 Max, which was grounded for 20 months starting in 2019 following two fatal crashes.

Demand then plunged for new aircraft because of massive airline losses caused by the Covid-19 pandemic.

Boeing has now been unable to deliver the widebody 787 Dreamliner for a year because of the quality control issues.

He added: “On the 787 program, we are progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications.

“While this continues to impact our near-term results, it is the right approach to building stability and predictability as demand returns for the long term.

“Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future.”

Source : Breakingtravelnews