"Boeing vs. Airbus: Are They Profitable or Facing Losses?"

This article delves into the financial performance of Boeing and Airbus, two of the largest aerospace manufacturers in the world. It examines their profitability, analyzing recent earnings, market conditions, and industry challenges. The comparison provides insights into how each company is navigating the competitive landscape, addressing factors such as production delays, order backlogs, and cost management. Are these aerospace giants making money or struggling with losses? The article offers a comprehensive overview.

Comparing the net profits of rival airplane manufacturers Boeing and Airbus over recent years, one company has consistently made money, while the other has frequently incurred losses. Boeing, often in the red, has struggled with repeated safety issues, severely impacting its reputation and finances. As of August 8, the new CEO, Kelly Ortberg, formerly of aviation tech firm Rockwell Collins, is stepping in to steer the company back on course.

The grounding of Boeing 737 Max planes, following two fatal crashes in late 2018 and early 2019 in Ethiopia and Indonesia, significantly hurt the company. This grounding, which lasted over 1.5 years, led to billions in fines and canceled orders, with Boeing posting a nearly $3 billion loss in Q2 2019. The planes were cleared to fly again in late 2020 after necessary changes to the flight control system and updates to training manuals. However, the coronavirus pandemic further strained Boeing, leading to a nearly $12 billion loss in 2020, with Q4 alone accounting for $8 billion of that figure.

Two years after the 737 Max crisis, Boeing faced another setback with the 787 Dreamliner, where production issues led to delayed deliveries and rework, resulting in a $4 billion loss in Q4 2021. Additional problems in its commercial jets and defense business caused another $3.3 billion loss in Q3 2022. The 737 Max issues resurfaced in early 2024, leading to reduced production and a $1.4 billion loss in Q2 of this year.

Critics attribute Boeing's ongoing safety issues to cost-cutting measures and inconsistent leadership, leading to design and construction shortcuts now becoming evident. In contrast, Airbus has been profitable since 2021, with its biggest loss in the last 5.5 years occurring in Q4 2019 due to a large fine in a corruption case.

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Source: Statista‍