On Wednesday, Boeing is scheduled to disclose its fourth-quarter results, addressing investors’ concerns about the repercussions of a midair incident involving one of its new 737 Max 9 aircraft. Although the impact of this event won’t be reflected in the earnings report, it is expected to be discussed in Boeing’s outlook. Analysts surveyed by LSEG, formerly known as Refinitiv, anticipate the following performance metrics for the last three months of 2023:
- Adjusted loss per share: 78 cents
- Revenue: $21.1 billion
Boeing’s CEO, Dave Calhoun, who assumed leadership four years ago following two fatal crashes of the Max, is once again facing pressure to restore the company’s reputation with airlines, regulators, and the public. This follows a January 5th incident on Alaska Flight 1282, where a panel blew out as the plane ascended from Portland, Oregon, causing a significant breach in the aircraft’s side.
Federal investigators are currently examining whether the door plug was improperly installed before the Max 9 was delivered to Alaska Airlines late last year. The incident is part of a series of production flaws that have impacted the timely delivery of new planes, causing dissatisfaction among major airline customers. Meanwhile, Boeing’s main competitor, Airbus, continues to outpace Boeing in new aircraft deliveries.
Although the Federal Aviation Administration recently cleared the Max 9 to resume flights, it announced a halt to Boeing’s planned production ramp-up. Boeing had aimed to reach approximately 50 planes per month in 2025 or 2026. The Boeing 737 Max, the company’s best-selling plane, is crucial to its financial targets. Any delay in production increases could impact Boeing’s financial goals and affect suppliers preparing for higher output, as well as customers anticipating new planes to meet post-COVID travel demand.
In response to the incident, Calhoun has undertaken visits to company and supplier production lines, as well as engagements with lawmakers on Capitol Hill. He has committed to transparency and addressing any deficiencies in manufacturing. The company conducted the first of several production stand-downs last week to discuss manufacturing issues with workers and explore potential improvements to Boeing’s processes.
