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Manufacturer to book $5 billion in charges on troubled programs and warns of deeper quarterly loss amid machinists strike
Boeing will delay the launch of the 777X to 2026. Boeing will cut 10% of its global workforce, or roughly 17,000 jobs, and warned of deeper losses in its operations as a machinist strike compounds problems brewing at the jet maker for years.
Along with the job cuts, the manufacturing giant said it would further delay the launch of a new airplane, the 777X, that is already years behind schedule. It will also discontinue the 767 cargo plane.
Boeing will book $3 billion of pretax charges tied to the two jet programs and another $2 billion in write-offs tied to several troubled programs in its defense unit. The charges will result in a quarterly net loss of roughly $6 billion.
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The European plane maker said that it will book charges of about €900 million in the first half of 2024
Airbus said it will miss annual aircraft targets, and will book charges of about €900 million in the first half of 2024. Airbus AIR said it won’t be meeting its annual targets for the year, including the number of commercial aircraft it planned to deliver, after its space-systems management team identified further commercial and technical challenges.
The European plane maker on Monday said that it will also book charges of about €900 million ($962.5 million) in the first half of 2024 following an extensive review of its space-systems programs.
Airbus expects to end the year delivering 770 commercial aircraft, down from a prior outlook of 800 commercial aircraft deliveries a couple of months ago.
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Engine problems are the latest chapter in the troubled history of the Airbus A220, a jet with the potential to revolutionize regional and short-haul travel
An Airbus A220-300’s roughly 170 seats make it ideal for small European countries’ flag carriers. Corporate history is full of great products that flopped—Betamax, Commodore’s Amiga computer and Aston Martin’s 1974 Lagonda car. For the Airbus AIR A220, avoiding a similar fate seems like a constant struggle.
The durability problems affecting jet engines have hit this aircraft hard, forcing airlines to cancel flights and ground crews. RTX-owned Pratt & Whitney has said that many of its PW1500G turbofans, which were supposed to last 20,000 flight cycles, should be sent to the shop at 5,000. Some are being sent in before 600 cycles. According to August estimates by analytics firm IBA, 15% of global A220s are grounded and another 42% are of the age that suggest inspections have happened or are due.
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The bloc’s aviation safety agency said it will require a one-time fleet inspection. The European Union’s aviation safety agency called for inspections to be carried out on Airbus A350 model planes after Hong Kong-based airline Cathay Pacific discovered earlier this week that engine components on some of its planes required replacement.
The bloc’s aviation safety agency said in an emergency airworthiness directive on Thursday that it is requiring a “one-off inspection of flexible fuel hose connections inside the engines to check for damage” on Airbus A350-1000 jets powered by Rolls-Royce Trent XWB-97 engines.
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The airline net profit in the first six months fell 15% from a year earlier
Cathay Pacific said it expects to restore passenger flights to prepandemic levels by the first quarter of 2025. Photo: Lam Yik/Bloomberg News
Cathay Pacific Airways is set to buy Airbus AIR 0.24%increase; green up pointing triangle jets valued at US$11 billion, the Hong Kong flag carrier said as it posted a drop in first-half profit in part due to lower ticket prices.
The airline on Wednesday said net profit in the first six months fell 15% on the year to 3.61 billion Hong Kong dollars, equivalent to US$463.1 million. It attributed the fall to the “normalization of ticket prices.”
Revenue rose 14% to HK$49.60 billion, helped by passenger flights reaching 80% of prepandemic levels, which also boosted cargo capacity, it said. Yield, or the revenue earned per passenger, declined by 11%, given that more passenger flights are being added to the market, it added.
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Boeing delivered 43 airplanes in July, a second straight relatively solid month for the jet maker as it works to ramp up production amid supply-chain glitches and in the wake of January's Alaska Airlines door-plug blowout.
That total included 32 737 jets, three fewer than Boeing delivered in June but higher than earlier in the year when it was delivering between 15 and 25 narrowbody planes a month. Deliveries included six 787s, four 767s and one 777 freighter. Boeing's backlog is now 5,477, down from 5,506 at the end of June.
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Airbus was confident it could capitalize this year on a postpandemic surge in demand, but the world's biggest jet maker has suffered a change in fortunes.
At the start of 2024, Airbus had just smashed its record for annual orders, airlines were clamoring for more jets and production was ramping up. The company’s only significant rival, Boeing, was in an escalating crisis after a panel blew off a 737 midflight.
Since then, Airbus has been dogged by delays, prompting the company to cut its annual delivery guidance and defer a long-heralded production target. The company’s stock is now down more than 20% since it hit a record high in March.
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World’s biggest jet maker has had a frustrating change in fortunes, having been confident it could capitalize this year on a postpandemic surge in demand Christian Scherer, head of Airbus’s commercial aircraft unit, has sought to ramp up production. ‘I thought we were going to be in a better place,’ he says. Christian Scherer, head of Airbus’s commercial aircraft unit, has sought to ramp up production. ‘I thought we were going to be in a better place,’ he says.
When Christian Scherer took the job of running Airbus’s AIR -0.03%decrease; red down pointing triangle commercial aircraft division at the start of the year, the gig looked like a slam dunk.
The plane maker had just smashed its record for annual orders, airlines were still clamoring for more jets and production was ramping up. The company’s only significant rival, Boeing BA -0.15%decrease; red down pointing triangle, had been flung into a fresh and escalating crisis after a door-size panel blew off the side of a 737 midflight.
Since then, Airbus has been dogged by delays, prompting the company to cut its annual delivery guidance and defer a long-heralded production target. Orders during the first half of the year were less than a third of the intake in the same period of 2023, and the company’s stock is now down more than 20% since it hit a record high in March.
It is a frustrating change in fortunes for the world’s biggest jet manufacturer, which was confident it could capitalize this year on a postpandemic surge in demand. Instead, Airbus is mired in supply-chain issues.
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