Boeing Co. today reported a third-quarter loss as the COVID-19 pandemic slams its commercial aircraft business. The company said it plans to keep cutting jobs.
Chicago-based Boeing posted a quarterly loss of $466 million, or 79 cents a share. That compares with a year-earlier profit of $1.17 billion, or $2.05.
The company’s “core” operating loss was $754 million, or $1.39 a share. On that basis, the consensus of analyst estimates was for a loss of $2.52 a share, according to CNBC.
CEO David Calhoun, in a separate message to employees, said Boeing an additional 10 percent job cut on top of reductions this year as COVID-19 continues to depress demand for air travel.
The aircraft maker had 160,000 employees at the start of the year. It currently has 145,000, according to its website.
“We anticipate a workforce of about 130,000 employees by the end of 2021,” Calhoun wrote to workers. The company, he said, intends to “align to market realities.”
In the third quarter, Boeing delivered 28 commercial planes, down from 62 a year earlier. For the first nine months, commercial deliveries slid by more than two-thirds to 98.
Boeing’s commercial aircraft business had a quarterly operating loss of $1.4 billion and $6.2 billion for the first nine months. Revenue for the unit plunged by more than half for both the quarter and nine-month periods.
Total company revenue declined 29 percent to $14.1 billion in the third quarter. Nine-month revenue fell 27 percent to $42.9 billion. The company’s overall nine-month loss totaled $3.5 billion, or $6.10 a share.
Boeing has seen order cancellations as airlines cut schedules to reflect lower demand. What’s more, Boeing 737 Max remains grounded as the company seeks regulatory approval to get the plane back in the air.
The 737 Max has been grounded since March 2019 after two fatal crashes. Boeing was criticized by members of Congress during hearings last year about the 737 Max. Boeing forced out then-CEO Dennis Muilenburg in December.