Boeing (NYSE: BA) Reported a record loss that surpassed USD11.9 Billion in 2020. The results were affected after the company postponed the delivery of its 777X aircrafts to late 2023, costing USD6.5 Billion within the fourth quarter, amid the ongoing global pandemic. Shares fell 3% by mid-morning trading.
“2020 was a year like no other,” Chief Executive David Calhoun said on an investor call. “Our world, our industry, our business and our communities were facing unprecedented challenges—and we’re still in the midst of it.”
The company experienced a loss of USD15.25 per share in the fourth quarter, which shocked Wall Street as analysts had predicted a loss of USD1.80 a share. The company noted a USD468 Million write-down against “abnormal production costs” due to the 737 Max program.
Boeing reported a loss on earnings of USD15.25 per share. Revenue amounted to USD15.3 Billion, higher than analysts expected USD15.07 Billion.
This year is predicted to be just as defying for the airline industry as new travel restrictions emerge and demand falters. Revenue for the commercial airplanes division dropped 37% in the fourth quarter in comparison to the previous year.
”I’m sure glad 2020 is in the rear-view mirror,” Calhoun said in an interview as investors may have been taken aback by the long list of charges that the company has undergone, “they don’t cloud my view of the future, and the company’s view of the future.”
Calhoun believes travel demand will not be restored to 2019 levels for another two to three years.