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6h ago

Boeing Takes $4.9 Billion 777X Charge, Delays First Deliveries to 2027 as Q3 Revenue Jumps

Higher 737 MAX output authorized by the FAA signals operational progress despite the 777X setback.

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FILE - Traffic drives in view of a Boeing Co. production plant, where images of jets decorate the hangar doors on April 23, 2021, in Everett, Wash. (AP Photo/Elaine Thompson, File)
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Overview

  • Boeing reported third-quarter revenue of $23.27 billion, up about 30% year over year, but posted a core loss per share of $7.47 tied largely to the 777X charge, with a quarterly net loss of roughly $5.3–$5.4 billion.
  • The company shifted the first 777X deliveries to early 2027 from 2026 and, including the latest charge, has accrued about $15 billion in program-related costs as certification work lags.
  • CEO Kelly Ortberg said the jet is performing well in flight testing and cited no new engine or airframe issues, while acknowledging the company fell behind on FAA authorizations needed for certification credit.
  • Boeing delivered 160 commercial aircraft in the quarter, the highest since 2018, helping return the company to positive free cash flow and generating about $1.1 billion in operating cash flow.
  • The FAA agreed in October to lift Boeing’s 737 MAX production cap to 42 jets per month from 38, and the company continues to face labor pressure with roughly 3,200 defense workers striking in St. Louis.