Boeing CEO outlines recovery plan while facing record annual loss

In the United States, Boeing recently announced a troubling financial situation as the company's CEO, Kelly Ortberg, detailed a recovery plan following a significant loss for the year ending 2024. The aviation manufacturer posted an annual loss of $11.83 billion, the largest since 2020, largely attributed to the ongoing impacts of the Covid-19 pandemic and a nearly two-month strike that halted production. The fourth quarter alone saw a $3.86 billion loss, primarily due to approximately $3 billion in charges from the commercial aircraft unit and the defense and space divisions. The aircraft maker's challenges have been escalated by persistent manufacturing defects and the repercussions of earlier crises, including the grounding of the 737 Max. In addition, revenue from the defense segment dropped 20%, which compounded the financial hits the company faced. The strike, which lasted until November, delayed deliveries, straining relationships with key customers like Ryanair who have publicly expressed frustration over the delivery delays. In response to these financial hardships, Ortberg reassured investors in his statements by highlighting promising signs of recovery and his commitment to stabilize Boeing. He emphasized the importance of focusing on core business operations while potentially spinning off non-essential divisions such as Jeppesen. Gregarious during company communications, he indicated plans to streamline operations and prioritize investments that will enable better performance in the future. Despite these efforts, analysts and stakeholders remain skeptical. The company's last profitable year was in 2018, and perceptions of recovery are tested by the financial realities and ongoing logistical obstacles. As Boeing strives to recover, important decisions loom that will shape the future trajectory of its operations and financial standing.