Boeing shares dropped more than 3% following the announcement of a significant loss of $6.27 billion for the third quarter ending September 30, 2024. This downturn is primarily attributed to an ongoing workers’ strike, which has halted production, and additional charges related to its commercial aircraft and defense programs. The adjusted loss per share for the quarter stood at $10.44, while the company’s total revenue came in at $17.84 billion, in line with market estimates.
The six-week-long workers’ strike, which has stopped production in Boeing’s Seattle assembly plants, is awaiting a critical vote on whether workers will accept the company’s offer or continue the strike. Boeing’s proposal includes a 35% wage increase over four years, $7,000 ratification bonuses, and retention of performance bonuses.
Boeing CEO Kelly Ortberg, who took over in August, has emphasized the need for a “fundamental culture change” within the company. His strategy focuses on reconnecting management with workers by spending more time on factory floors to address issues at their root cause. Despite the current challenges, Ortberg expressed optimism, stating that Boeing could return to its former legacy as a leading aerospace company with the right focus and culture.
