Boeing posts first-quarter net loss of US$641 million, will reduce workforce

©Boeing

Boeing has posted first-quarter revenue of US$16.9 billion, a net loss which amounted to US$641 million, primarily reflecting the impacts of COVID-19 and the 737 MAX grounding. Boeing recorded operating cash flow of US$-4.3 billion.

As the pandemic continues to reduce airline passenger traffic, Boeing is seeing significant impact on the demand for new commercial airplanes and services, with airlines delaying purchases of new jets, slowing delivery schedules and deferring elective maintenance. To align the business for the new market reality, Boeing is taking several actions that include reducing commercial airplane production rates. The company also announced a leadership and organizational restructuring to streamline roles and responsibilities, and plans to reduce overall staffing levels with a voluntary layoff program and additional workforce actions as necessary.

Boeing has also taken action to manage near-term liquidity, as it has drawn on a term loan facility; reduced operating costs and discretionary spending; extended the existing pause on share repurchases and suspended dividends until further notice; reduced or deferred research and development and capital expenditures; and eliminated CEO and Chairman pay for the year. Access to additional liquidity will be critical for Boeing and the aerospace manufacturing sector to bridge to recovery, and the company is actively exploring all of the available options. Boeing believes it will be able to obtain sufficient liquidity to fund its operations.

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