Aerospace Giant, Boeing (BA) reported a $2.4 billion second-quarter loss and plans to slow production of its key commercial aircraft as coronavirus pandemic has severely impacted the travel industry hurting demand for new planes and it’s best selling 737 Max jets remain grounded since March 2019, due to two fatal crashes.
The company reported an EPS, a loss of $4.79 versus $2.54 expected, and revenue of $11.8 billion versus $13.16 billion expected, a 25% decline from the year-ago quarter. As per reports, Boeing has more than 470 planes still on the ground that haven’t been delivered to customers with mostly 737 Max jets. It plans to lower production and expects to gradually increase manufacturing of its 737 Max to 31 a month by the beginning of 2022.
Since air travel will likely take two to three years to recover, the company is planning to reduce costs by bringing its workforce down by 10% to 1,60,000 people, along with its support for liquidity with a $25 billion debt sale in April to deal with the crisis.
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.
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