The business world will have its eyes set on Boeing as its quarterly report is scheduled for release this Wednesday. The report is eagerly awaited as it will detail the financial repercussions of the mid-air accident involving the loss of a door plug from a 737 Max 9 aircraft in January. This mishap has been another costly blow for the aviation giant both in terms of safety standings and finances.
Market analysts are bracing themselves to digest the company’s seventh consecutive quarterly loss. The unexpected accident, which led to additional federal oversight and a reduction in production, has likely resulted in higher than anticipated cash burn for Boeing. This production dip comes at an unfortunate time as the airline industry is preparing for a bumper summer travel season just around the corner.
Estimations from the London Stock Exchange Group suggest an adjusted loss per share of $1.76, with revenues projected to fall at around $16.23 billion.
The January incident has also resulted in a production bottleneck for the company, particularly impacting its best-selling 737 Max planes. The Federal Aviation Administration (FAA) put a lid on Boeing’s plans to scale production following the mishap. The FAA’s investigations also unearthed numerous compliance issues within Boeing’s supply chain.
Turbulent times lie ahead for outgoing CEO Dave Calhoun, who previously announced that he would step down at the end of the year. There are questions aplenty surrounding the company’s operations and future strategy. Key questions include when Boeing plans to stabilize its production line and ramp up the production of the 737 Max and other aircraft. The intrigue also extends to the appointment of a new CEO, the cost Boeing is likely to bear due to the current crisis, and if there’s a potential buyback deal in the pipelines with fuselage manufacturer Spirit AeroSystems.
This recent news will continue to develop. Stay tuned for further updates.
