"US aviation giant Boeing posted quarterly losses of $5.4 billion (roughly 4.6 billion) on Wednesday. This was prompted in large part by a $5 billion penalty for pushing back the first delivery of its long-delayed 777X model until 2027. The loss includes compensation payable to customers facing delayed deliveries, Boeing said. Last month, CEO Kelly Ortberg had said the company was behind schedule in certifying the jet and that a "mountain of work" still needed to be done. But he had not announced further delays beyond the 2026 delivery date that was planned at the time."
"Repeated certification and production delays have pushed back deliveries since the plane's maiden flight in 2020, with Boeing racking up charges of $15 billion in the process, further straining its finances. "While we are disappointed in the 777X schedule delay, the airplane continues to perform well in flight testing, and we remain focused on the work ahead to complete our development programs and stabilize our operations in order to fully recover our company's performance and restore trust with all of our stakeholders," Ortberg said. The problems have opened the door to Boeing's European rival Airbus as it tries to boost sales for its new long-distance, high-capacity workhorse, the A350."
Boeing recorded a $5.4 billion quarterly loss driven mainly by a $5 billion penalty tied to delaying first 777X deliveries until 2027 and compensation for affected customers. Company leadership acknowledged the 777X program is behind schedule and requires a "mountain of work" to complete certification and production. Repeated delays since the 2020 maiden flight have generated about $15 billion in charges and strained finances. The 777X is central to Boeing's widebody strategy but is losing ground to Airbus's A350 just as long-haul international travel demand rebounds and airlines seek new aircraft.
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