by Lacey Pfalz
Last updated: 9:20 AM ET, Wed April 24, 2024
Boeing released its first quarter earnings report on April 24, showing a drop in financial results following lower Boeing 737 deliveries and the recent safety incidents that have toppled the American aircraft manufacturer’s reputation.
Revenue was $16.6 billion in the first quarter of 2024, down 8 percent from the same time last year, which was nearly $18 billion in revenue. Shares were also down this quarter, with GAAP loss per share of $0.56 and core loss per share of $1.13.
This loss is due largely in part because deliveries of its commercial aircraft are down 36 percent year over year. In the first quarter of 2023, Boeing delivered 130 commercial aircraft; this quarter, it delivered 83. Therefore, revenues for its commercial aircraft dropped 31 percent year over year, to $4.65 billion.
The company is reporting a net loss of $355 million, still lower than in the first quarter of 2023, which was $425 million.
"Our first quarter results reflect the immediate actions we've taken to slow down 737 production to drive improvements in quality," said Dave Calhoun, Boeing president and CEO. "We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future."
According to the report, the Boeing 737 production line decreased to 38 per month to increase quality management systems. The segment of Boeing is also “implementing a comprehensive action plan to address feedback from the FAA audit of 737 production.”
There are currently over 5,600 commercial airplanes backlogged, valued at $448 billion.
Boeing has been under fire from the Federal Aviation Administration and the National Transportation Safety Board since January, following several incidents that have put into question the efficacy of its safety standards.
Boeing’s current CEO, David Calhoun, has resigned along with two other executives and will be leaving at the end of the year, prompting questions as to the company’s future.
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