Boeing has reported a full-year loss for 2019 of US$636 million, its first in just over 20 years.
The loss is dominated by the 737 MAX disruption with overall costs associated with the crashes and subsequent groundings put at over $18 billion.
New President and CEO Dave Calhoun reiterated on CNBC today his full support for the MAX.
At the earnings call Boeing confirmed that 787 production will be cut from 14 a month to 12/month in late 2020 and then to 10/month in early 2021. Boeing, however, plans to raise production back to 12/month in 2023.
The cut back relates to orders from China ceasing due to long trade war. China is expected to order more, but not in time for production planning for 2021.
Mr Calhoun said that “it’s a very challenging moment for Boeing. We got a lot of work to do. But I’m confident that we’ll manage this situation in the right way, and I’m optimistic about the company’s future, both in terms of the markets that we serve and maybe, more importantly, the engineering and technical capabilities we bring.”
He added, “let me just say to the families and the loved ones of those who perished in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents, we — I am truly and deeply sorry for your loss. I will repeat this many, many times in the years ahead. Their memories will drive me personally to do everything I can to make our airplanes and our industry safer, and I know I speak for all of my Boeing associates accordingly.”
“I’ve been spending a lot of my first weeks meeting, connecting with, listening to my Boeing teammates across the country. What I’m seeing and hearing is that our employees are incredibly proud to work at Boeing, but they’re also hurt and disappointed that we’ve let our stakeholders down. Together, we’re committed to getting back on our front foot, learning with humility and building on the powerful legacy they and their predecessors have created over the last century. This includes engaging with one another and our stakeholders with greater transparency, holding ourselves accountable to the highest standards of safety and quality and incorporating an outside-in perspective on what we do and how we do it.”