Boeing reports loss due to Dreamliner delivery delays

• Boeing reported a loss of $7.02 per share in the fourth quarter

• Boeing plans to more than double the deliveries of its 737 MAX jet to 500 this year

Boeing Co (NYSE: BA) said on Wednesday the production problems and delivery delays of 787 Dreamliner costed it $4.5 billion in the fourth quarter.

Boeing reported a loss of $7.02 per share in the fourth quarter after two quarters of profit due to the charges.

Boeing said it expects increased deliveries of 737 MAX and Dreamliner jets this year as it plans to work on the production problems. Boeing plans to more than double the deliveries of its 737 MAX jet to 500 this year. 

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The company reported a loss of $4.3 billion for 2021 with a deficit of $4.16 billion in the fourth quarter.

Delivery boost

Airlines are still recovering from the pandemic restrictions as the global capacity fell 27% last year, compared to 2019 levels. Compared to Airbus SE (NYSE: EADSY), Boeing only delivered only half as many jetliners last year.

Boeing, which plans to boost production in 2022, said it has been helped by increase in airfreight. The company also expects passenger traffic to return to pre-pandemic levels by 2023 or 2024.

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Boeing expects to end the year with surplus of cash from operations as investors consider cash flow quite important for the company.

Delayed delivery of Dreamliner was due to factory defects and regulatory difficulties. The company used $3.5 billion to compensate customers for the delays.

Chief Executive David Calhoun said Boeing is still working with federal air-safety regulators about the defects. “I wish it could go faster,” Calhoun said. “I can’t accelerate it.”

Picture Credits: Reuters