Boeing Records Historic 13 Trillion Won Loss Amid COVID-19 Impact

[Asia Economy Reporter Yujin Cho] Boeing, hit hard by the novel coronavirus infection (COVID-19) crisis, posted its largest-ever loss last year.

On the 27th (local time), Boeing announced in its Q4 earnings report that it recorded a net loss of $11.94 billion (approximately 13.2 trillion KRW) for the entire year. Revenue plunged 24% year-on-year to $58.2 billion (approximately 64.3 trillion KRW).

Boeing posted a net loss of $8.4 billion (approximately 9.3 trillion KRW) in the fourth quarter alone. Revenue was $15.3 billion (approximately 16.9 trillion KRW), down 15% compared to the same period last year. The loss per share was $15.25, far below market expectations of $1.80, marking earnings shock-level results.

The suspension of production of the new 737 Max following two crashes, coupled with the prolonged impact of the global COVID-19 pandemic, severely affected performance. Due to the pandemic, countries worldwide halted aircraft operations, causing new aircraft deliveries and orders to fall to the lowest levels in decades. Last year, aircraft deliveries dropped by more than half, resulting in losses of $12 billion for Boeing.

Boeing's commercial aircraft division revenue in Q4 alone was $4.73 billion (approximately 5.2 trillion KRW), a 37% sharp decline from the same period last year. With aircraft deliveries reduced to half of the previous year and the added burden of development costs for the 777X, Boeing reportedly burned through $18.4 billion (approximately 20.3 trillion KRW) in cash last year.

David Calhoun, Boeing's Chief Executive Officer (CEO), said, "Last year was a year of turmoil with the global aviation industry severely contracted. With the grounding of the 737 Max and the impact of COVID-19 on commercial aircraft demand, we are facing unprecedented challenges."

Boeing, which directly employs over 100,000 people, announced plans to cut 31,000 jobs due to worsening management caused by accumulated losses.

This content was produced with the assistance of AI translation services.