Boeing loses more than half of its pre-COVID-19 revenue in nine months

Destinations

So, commercial aircraft deliveries fell 55% from 62 aircraft in 2019 to 28 in 2020 in the third quarter, bringing revenue from $ 8.249 million in the same period in 2019 to $ 3.596 million in 2020, a 56% less. For the first nine months of this year, deliveries fell 67% from 301 in 2019 to 98, with a loss of revenue of 54%, from $ 24,793 million in 2019 to $ 11,434 million this year. At the end of the period, the order book includes, however, more than 4,300 aircraft valued at 313,000 million dollars.

Third-quarter operating margin in commercial aircraft manufacturing was pressured by lower delivery volumes as well as $ 590 million in one-time production costs related to the 737 program, as well as additional layoff costs in the third quarter.

Between the pandemic and the MAX

“The global pandemic continued to add pressure to our business this quarter and we are aligning ourselves with this new reality, meticulously managing our liquidity and transforming our company to be more transparent, more resilient and more sustainable in the long term“, He said Boeing President and CEO Dave Calhoun.

Like global regulators, Boeing made progress on the safe return to service of the 737 MAX, including “rigorous certification and validation flights”, conducted by the Federal Aviation Administration (FAA) of the United States, the European Aviation Safety Agency (EASA) and Transport Canada.

The Joint Operational Evaluation Board, which includes the civil aviation authorities of the United States, Canada, Brazil and the European Union, also conducted its evaluations of updated crew training. The 737 MAX has completed around 1,400 test and verification flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.

Boeing highlights that, to adapt to the impacts of COVID-19 on the market and position the company for the future, Boeing continued its business transformation in five key areas, including its infrastructure footprint, overall and organizational structure, portfolio and investment, supply chain health and operational excellence. As the company resizes its operations to align with market realities, Boeing expects to continue reducing overall staffing levels through wear and tear, as well as voluntary and involuntary reductions in the workforce, and posted additional costs from layoff in the third quarter.