The prototype Boing 777X, a 777-9, on an early test flight
Photo by: Boeing
US aerospace giant Boeing released its financial results for both the full year and the fourth quarter of 2020 on Thursday. Virtually all the figures were in the red. The group blamed the Covid-19 pandemic, the grounding of the 737 MAX airliner and issues with its widebody airliner programmes for the losses.
Full-year revenues for 2020 were, at nearly $58.16-billion, 24% down on the 2019 figure of almost $76.56-billion. The group’s operating margin was –22% last year, in sharp contrast to the –2.6% for 2019. The loss from operations in 2020 was just under –$12.77-billion whereas in 2019 the equivalent loss had been much less, at nearly –$1.98-billion. Boeing’s net loss last year had been –$11.94-billion, as against –$0.64-billion in 2019. Operating cash flow in 2020 has been –$18.41-billion as against almost –$2.45-billion the year before.
“2020 was a year of profound societal and global disruption which significantly constrained our industry,” pointed out Boeing president and CEO Dave Calhoun. “The deep impact of the pandemic on commercial air travel, coupled with the 737 MAX grounding, challenged our results. I am proud of the resilience and dedication our global team demonstrated in this environment as we strengthened our safety processes, adapted to our market and supported our customers, suppliers, communities and each other.”
However, the group still has an order backlog worth $363-billion, which includes orders for more than 4 000 of its commercial airliners. The US civil aviation regulator, the Federal Aviation Administration (FAA), had, following the implementation of various modifications to, and procedural changes regarding, the aircraft, allowed the 737 MAX to return to service, as had a number of other regulators. Since the FAA lifted its grounding order on the airliner, five airlines had returned their 737 MAXs to operation and these had, as of January 25, accumulated some 5 500 flying hours on more than 2 700 revenue flights. Over the same period, Boeing delivered more than 40 737 MAXs to customers.
However, the group also announced that the first delivery of its new 777X widebody airliner had been delayed yet again. The original intended first delivery date had been 2020. That had then been postponed to this year, and then delayed again to next year, and now had been put back once more. The first delivery is now scheduled for late 2023. Boeing explained that this was because of its latest evaluation of global certification requirements (which had resulted in the company making design modifications to the 777X), an updated estimate of the impact of Covid-19 on market demand, and talks with its customers regarding the timing of aircraft deliveries.
“Our balanced portfolio of diverse defence, space and services programmes continues to provide important stability as we lay the foundation for our recovery,” highlighted Calhoun. “While the impact of Covid-19 presents continued challenges for commercial aerospace into 2021, we remain confident in our future, squarely-focused on safety, quality and transparency as we rebuild trust and transform our business.”