Boeing lost US$6.17 billion in Q3 and will lay off 10% of its employees, approximately 17,000

Boeing’s third-quarter financial report highlights the company’s volatility as an aircraft manufacturer.

In the last quarter, Boeing reported a net loss of $6.17 billion, bringing its cumulative losses for 2024 to nearly $8 billion. The company’s operating cash flow was reported at negative $1.345 billion, with revenues around $17.8 billion, reflecting a decrease of approximately 1% compared to the same period last year. These figures align closely with preliminary numbers released last week.

Boeing attributed its negative operating cash flow to “declining deliveries of commercial widebody aircraft, as well as unfavorable cash management timing, which includes the impact of IAM work stoppages.” A year earlier, the company reported an operating cash flow of $22 million.

In a preliminary report last week, Boeing announced the suspension of production for its 767 tanker and delayed the rollout of its upcoming 777X widebody jet. The company also stated it will record $5 billion in pre-tax charges, with $3 billion stemming from its commercial aviation division and $2 billion from its defense business.

Additionally, Boeing has entered into an agreement with a banking syndicate for $10 billion in supplemental credit and has filed a mixed securities offering with the SEC to issue up to $25 billion in new bonds, common stock, preferred stock, and other securities. According to The Wall Street Journal, Boeing is looking to raise $10 billion through this filing.

As of this quarter, Boeing reported having $10.5 billion in cash and securities. The company also indicated that its total backlog stands at $511 billion, which includes more than 5,400 commercial aircraft orders.

New CEO David Calhoun announced a restructuring plan that includes a 10% workforce reduction across all departments, amounting to approximately 17,000 employees, as part of efforts to stabilize its financial situation.