Boeing to cut more jobs as pandemic losses mount

Daniel Fowler
October 28, 2020

Revenue tumbled 29% to $14.14 billion.

Its third quarter loss, meanwhile, compares with a $1.2bn profit in the same period a year ago.

The Covid-19 pandemic has brought air travel to a near halt, pushing major airlines to the brink of bankruptcy and forcing them to seek government aid, cut costs and defer aircraft deliveries - when Boeing gets paid most of the money for new jets.

Boeing Co reported its fourth straight quarterly loss on Wednesday as the coronavirus pandemic and 737 MAX grounding continued to hammer sales, while reaffirming its expectation that United States deliveries of the jet would resume before year-end.

As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition, as well as voluntary and involuntary workforce reductions, the quarterly report said. That compares with a year-earlier profit of $1.17 billion, or $2.05.

Earlier this year, Boeing targeted a 10% cut to its staff, which stood at 160,000 people at the start of the year.

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Based on their experience with other coronaviruses, the scientists suggest immunity may not be long-lasting, reports CBC Canada . There was a steeper decline in those over 65 and in those who were asymptomatic compared with those who had symptoms.

According to Calhoun, since the start of the pandemic, Boeing has raised liquidity, reduced spending, simplified reporting structures, and dramatically lowered commercial production rates.

Boeing has a total backlog of $393 billion, including more than 4,300 commercial planes. Sales declines were most pronounced in the commercial aircraft unit where revenue fell 56% from $8.2 billion in the third quarter of 2019 to $3.6 billion. However, when you add in the pandemic's effect, Boeing has so far delivered just 98 aircraft in the first nine months of 2020.

The Federal Aviation Administration is expected to lift its March 2019 grounding order on the 737 MAX as soon as next month, pending approval of software and training changes.

The ongoing deep impacts of COVID-19 on the commercial aviation market are reflected in Boeing's lower revenue, earnings and cash flow compared to the same period a year ago, its president and CEO Dave Calhoun said. Boeing shares rose 1% in premarket trading.

Once Boeing's best-selling passenger plane, the 737 MAX is now apparently being rebranded as the 737-8.

Calhoun has taken steps in 2020 to bolster the company's cash position since the coronavirus devastated the travel market. The aircraft has been grounded for over a year, after two fatal crashes less than six months apart in Indonesia and Ethiopia killed 346 people.

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