Boeing Faced Financial Troubles in the First Quarter of 2024
Because of the many problems plaguing the aircraft manufacturer, financial experts did not predict a blockbuster year for Boeing in 2024. However, within the first few months, they realized it was likely going to be even worse than they expected.
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During the first quarter of 2024, Boeing lost billions of dollars, leading its shares to fall by 7.6% over just a couple of months and a whopping 32% since the same time last year.
The Situation at Boeing Isn’t Entirely the Company’s Fault
Although Boeing has certainly been making headlines for the wide range of mistakes it has made over the past few years, technically, its current financial struggles aren’t entirely the company’s fault.
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While financial records show that the company is hemorrhaging up to $1 billion a month, it’s not because of Boeing’s now poor reputation or even faulty planes. It’s because of a supply chain issue in China.
200 Boeing Planes Are Waiting for Parts From China
Experts report that China has been experiencing production delays since the COVID-19 pandemic. From material shortages to an increased demand for aviation parts, the Chinese manufacturing companies simply cannot keep up.
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Because of this delay in parts, Boeing allegedly has more than 200 planes halfway built, sitting outside on the tarmacs alongside its many warehouses throughout the country.
Boeing Is Currently Building Fewer Planes Than It Used To
Although 200 unfinished planes is certainly a hefty amount, and they are unquestionably costing the company billions of dollars, the situation actually could have been a lot worse.
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In 2022, Boeing built and delivered a total of 480 planes. However, nearly eight months into 2024, the company has only delivered 175 planes. While this decrease is in part due to the delayed supply chain, Boeing actually planned to produce fewer planes this year.
The Boeing Door Debacle
The main reason why Boeing decided to build fewer planes in 2024 is because the company is still dealing with the aftermath of the Alaskan Airway door accident.
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On January 5, 2024, shortly after taking off from Portland International Airport in Oregon, the door of a Boeing airplane operated by Alaska Airlines literally blew off the side of the plane. There was an immediate uncontrolled decompression of the air within the plane, and the pilot immediately turned the plane around and performed an emergency landing back in Portland.
An Investigation Into Boeing’s Safety Practices
Although no passengers were hurt in the accident, Boeing’s safety practices were immediately questioned.
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The National Transportation Safety Board quickly initiated an extensive investigation into the company. While they’ve yet to find out exactly why the door flew off the side of the plane, they have found a variety of other safety concerns at the manufacturing plants.
Boeing Is Now Fixing the Many Safety Issues
In response to the NTSB’s investigation, as well as complaints from millions of people around the world, Boeing has promised to assess and adjust its practices to ensure each and every plane is perfectly safe.
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They say that, by building fewer planes this year, they are proving to customers that safety, not profits, is their number one priority.
Meanwhile, a Boeing Whistleblower Says the Company Is Using Damaged Parts
However, as the investigation continues and Boeing continues to lose billions of dollars on half-finished planes, the company is also facing scrutiny from yet another whistleblower.
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Former employee Sam Mohawk recently announced that he personally saw hundreds of plane parts left out in the rain outside the Boeing warehouse where he worked for years. Mohawk and his lawyer, Brian Knowles, are arguing that this practice isn’t always dangerous; it’s also illegal.
No One Has Mentioned the State of the Unfinished Planes
Interestingly, no one has mentioned any safety concerns regarding the hundreds of half-built planes sitting on the company’s tarmacs.
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However, if they stay outside any longer, people may start to. Realistically, Boeing is one more drama away from imploding, and this could be the final straw.
Are Companies Boycotting Boeing?
In fact, many people have already started boycotting Boeing’s 737 Max airplanes. The Alaskan Airline door debacle happened on a Boeing 737 Max, as did both Boeing crashes, which killed a total of 346 people.
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Although it doesn’t seem that any commercial airlines have sworn off the company, many passengers are avoiding flights on 737 Max airplanes. There are actually websites that only offer flights that are not on Boeing 737 Max aircraft.
Will Boeing Survive This Ongoing Crisis?
When reading about Boeing’s seemingly never-ending problems, it may sound as though the company is doomed. However, experts believe that the company will survive this crisis and could possibly come back even stronger than before.
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Losing $1 billion every single month on unfinished planes, boycotting, improving safety practices, and supply chain problems are all costing the company an untold amount of money. However, Boeing isn’t worried about cash; the company is still worth a whopping $114.73 billion.