Boeing was the largest airplane manufacturer in the world before it lost this status even before the coronavirus pandemic. Moreover, the best-selling plane narrow-body Boeing 737 Max created a lot of problems for Boeing. Importantly, Boeing 737 Max remains on the ground for more than a year. Also, nobody knows for sure when this model will be able to transport passengers once again.
The multinational corporation started to lose money even before the pandemic, but coronavirus created even bigger obstacles. Consequently, Boeing posted a $641 million loss in the first quarter of 2020. It plans to reduce its workforce as well as to cut the aircraft production as the world aviation market is struggling to deal with the existential crisis.
In the first quarter, the company burned through $4.3 billion in cash. Boeing had to cope with rising cancellations and a dearth of orders.
Boeing and its plans for the future
The coronavirus crisis is a fresh problem for the company that was struggling to cope with the grounding of its best-selling plane.
In the first quarter, the earnings per share is a loss of $1.70. Moreover, revenue missed the expectations. The Q1 company’s revenue was $16.91 billion while Wall Street expected that revenue would reach $17.30 billion.
Moreover, compared with the same period in 2019, revenue fell by 26% to $16.91 billion.
It is important to mention that, air travel in the U.S. fell by 95% in comparison with the same period in 2019. According to Boeing’s CEO Dave Calhoun, it would take two to three years for travel demand to return to 2019 levels.
As a reminder, earlier this year the aviation industry was full of optimism regarding the travel demand. However, due to the current situation, Boeing decided to reduce its workforce by about 10% to reduce the costs.