Boeing Reports Unexpectedly Large Losses Following Worker Strike and Cost Overruns

The aerospace giant cites a seven-week strike, increased labor costs, and production setbacks as key factors behind $2.8 billion in new charges.

Boeing announced a loss of $5.46 per share for the last quarter, significantly exceeding analyst expectations by $4 per share.
The company revealed $2.8 billion in new charges, including $1.1 billion in its passenger aircraft division and $1.7 billion in its defense sector.
A seven-week worker strike in the fall led to reduced aircraft deliveries and a 38% wage increase under a new four-year labor agreement.
Production of the next-generation 777 and Air Force One projects faced delays and cost overruns, further impacting financial performance.
Boeing plans to release full quarterly earnings next Tuesday, following its preliminary disclosure of these financial challenges.