Record losses weigh down on Boeing 777 debut

The plane maker Boeing announced it had posted a record $12 billion annual loss amid Covid-19 pandemic, Reuters reported. The negative financial results have forced the company to delay the debut of the 777X jet again as pandemic resulted in a sharp drop for the largest jets as international travel restrictions prompted a slump in demand from transport and travel companies.

Boeing said it expects the 777X, a larger version of the 777 mini-jumbo, to enter service by late 2023, delaying the jet’s launch for the third time and booking a $6.5 billion pre-tax charge. The company has been developing the widebody jet with the goal of releasing it in 2022, already two years later than planned.

A historic slump in air travel has also hurt shipments of Boeing’s 787 Dreamliners to airlines, causing the aircraft to pile up in dozens, further weighing on company which already has a stored inventory of about 450 737 MAX jets. Boeing said it expects to resume the shipments of its wide-body 787 Dreamliners in 2021 as air travel recovers. Deliveries of the 787s slumped nearly 70% to 53 planes in 2020 and are not expected to recover to 2019 levels until at least 2024, according to analysts.

Boeing also said it delivered an additional 13 737 MAX airplanes in January so far from its stored inventory, adding to the 27 aircraft it shipped in December after the U.S. cleared the jet to fly again following a 20-month ban.

The company’s net loss rose to $8.44 billion in the fourth quarter ended Dec. 31, from $1.01 billion a year earlier, taking its full-year loss to a record $11.94 billion.

Similar articles

  • US, European airlines cancel flights to Israel

    US, European airlines cancel flights to Israel

    British Airways, Virgin Atlantic and Iberia became the latest of a number of airlines to cancel flights to and from Israel amid rising tension of the escalating conflict in the region, Reuters reported. All companies stated that safety of crew and passengers is essential and will not be put on risk. "The safety and security of our colleagues and customers is always our top priority, and we continue to monitor the situation closely," British Airways said after cancelling its flights to and from Tel Aviv.

    41
  • Airbus, Air France face trial over 2009 crash

    Airbus, Air France face trial over 2009 crash

    A French court ruled that Airbus and Air France must face charges, related to the death of 228 people on board of plane that crashed in 2009 during a flight from Rio de Janeiro to Paris, AFP reported. Flight AF447 crushed into the Atlantic Ocean during a storm on 1 June, 2009, the deadliest crash in the whole Air France history. Lawyers for Airbus immediately said that they would file an appeal.

    32
  • Pandemic piles up Heathrow Airport losses

    Pandemic piles up Heathrow Airport losses

    With pandemic still dragging back the international transport links, UK biggest Heathrow Airport announced it was piling new losses, amounting at millions of pounds, BBC reported. Heathrow dipped a further £329m into the red in the first three months of the year, bringing total losses since the start of the pandemic to £2.4bn. Just over 1.7 million passengers travelled through the airport during the quarter, down 91% on the period in 2019.

    40