NEW YORK, USA: Boeing is poised to announce its largest quarterly loss in four years, with projections indicating a staggering $6.1 billion deficit attributed to various one-time costs, including the ongoing strike by the International Association of Machinists (IAM) and Aerospace Workers.
The announcement, set to come from newly appointed CEO Kelly Ortberg, coincides with a crucial vote by approximately 33,000 striking workers in the Seattle region on whether to accept the company’s latest contract proposal.
The strike, which has now lasted nearly six weeks, has halted production at two key assembly plants responsible for Boeing’s 737 MAX and 777 aircraft. Analysts estimate the work stoppage has resulted in approximately $7.6 billion in direct losses, affecting both Boeing and its suppliers significantly.
This comes on the heels of previous challenges, including regulatory scrutiny following two fatal 737 MAX crashes, which necessitated heightened safety protocols and a slowdown in production.
Boeing’s recent contract offer includes a substantial pay increase of 35% over four years and a signing bonus of $7,000, but it notably lacks the restoration of pension benefits, which has been a major concern for many employees. Union leadership indicates that the vote will likely be close, reflecting the difficult circumstances faced by workers.
In addition to grappling with labor issues, Boeing is managing a substantial financial overhaul, planning to raise up to $25 billion through stock and debt offerings to navigate this tumultuous period. The company’s path to recovery is compared to that of Hercules in Greek mythology, suggesting that a long and arduous journey lies ahead for Boeing as it seeks to restore its standing in the aviation industry .
