Boeing revenues drop 8% after production slowdown

Boeing has reported an 8% drop in first-quarter revenues year on year following the slowing down of 737 aircraft production to address quality and safety concerns.

The revenue figure of $16.6 billion is down from the $17.9 billion recorded in the same period of 2023, with the slump largely being attributed to lower commercial deliveries.

The commercial airplanes division recorded a 31% fall in first-quarter revenues year on year, from $6.7 billion in 2023 to $4.7 billion this year, as the number of deliveries fell 36% from 130 to 83.

More: Boeing limits 737 production amid aftermath of panel blowout

Boeing president and chief executive Dave Calhoun said: “Our first-quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality.”

He added: “We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”

The company reported a net loss of $355 million for the first three months of the year, as well as a loss per share of $0.56.

The decision to slow down 737 production followed a cabin panel blowout in January on a brand-new Boeing 737 Max 9 operated by Alaska Airlines.

Boeing said it reduced 737 production to below 38 per month so it could make improvements in its “quality management system”.

The manufacturer added that the commercial airlines division was also implementing a “comprehensive action plan” to address feedback from the Federal Aviation Administration audit of 737 production.

The commercial airplanes division booked a total of 125 net orders, including 85 737-10 aircraft for American Airlines and 28 777X aircraft for customers including Ethiopian Airlines.

A total of 83 aircraft were delivered during the quarter, Boeing reported, with the backlog standing at more than 5,600 aircraft valued at $448 billion.

Boeing’s net loss for the first three months of this year was an improvement on last year’s figure, which stood at $425 million.

Photo: BadPixma/Shutterstock

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