Boeing reported an $8.4 billion loss in the fourth quarter of 2020, amounting to a record nearly $12 billion loss for the entire year, company reports show.
The steep drop is likely due to lower demands for planes amid the COVID-19 pandemic, and additional setbacks of its forthcoming 777X plane, which was pushed to at least 2023, according to the company’s quarterly reports.
Revenue dropped 15% to $15.3 billion for the Chicago-based company on Wednesday.
Additionally, fourth-quarter optics showed a loss of $15.25 per share, as experts initially estimated a loss of $1.63, according to Investopedia.
Boeing has reported massive losses in the past two years due to the crisis involving 737 Max planes, which had software issues resulting in two deadly crashes in 2018 and 2019, killing hundreds and causing the planes to be grounded until late last year. The midsize 737 Max planes were grounded for 20 months but resumed flights with five carriers in December.
The COVID-19 pandemic stifled air travel in 2020, causing many carriers to place hundreds of aircraft in storage, potentially lowering the demand of future aircraft manufacturing in the future.
Boeing’s staggering loss reports come as the Transportation Security Administration announced a 61% decline in customer air travel last year, reporting nearly 500 million fewer people traveled by air compared to the record 824 million travelers who flew in 2019.
Boeing delivered 39 commercial planes during the fourth quarter, including 27 Maxes, 10 of which went to American Airlines and eight to United Airlines.
The Chicago-based aircraft maker made a total of 157 deliveries in 2020, In contrast to the European Airbus company, which delivered 566 aircraft last year.
The company faces a steep challenge with its future plans to deliver the 777X, expected to arrive a year later than initially expected. Boeing’s 777X wide-body commercial aircraft program recorded a $6.5 billion pretax charge, causing shares to fall by 4% down to $194.03 per share on Wednesday, according to a Nasdaq report.
The drop in Boeing’s share price marks the first time it’s dropped below $200 since November.
