Boeing posts $2.4bn quarterly loss as Covid-19 weakens demand
Aerospace giant Boeing posted a quarterly net loss of $2.4bn on Wednesday amid weakened demand for its aircraft as a result of the Covid-19 pandemic.
Boeing reported worse than expected second-quarter figures, with revenues falling 25% to $11.8bn and a loss per share of $4.79 - significantly wider than even the $2.54 per share loss forecast by analysts.
Boeing said the pandemic had accelerated losses due to decreased demand for new planes, however, the grounding of its best selling 737 Max back in March 2019 following two fatal crashes also weighed on the group.
The Chicago-based company confirmed plans to slow production, stating it would gradually increase manufacturing of the beleaguered 737 Max to 31 per month before the start of 2022. It currently has 470 planes awaiting delivery to customers.
Chief executive Dave Calhoun said: "The diversity of our balanced portfolio and our government services, defence and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities.
"We are taking the right action to ensure we're well-positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing."
As of 1320 BST, Boeing shares were flying 1.57% higher in pre-market trading at $173.53 each.