Executives said the financial loss reflects a broader production slowdown as the company changes the way it makes aircraft.
“We certainly face challenging times in the near future,” Boeing CEO Dave Calhoun said in a letter to employees. “Shortening delivery times can be difficult for customers and financially. But safety and quality must come first.”
This is the seventh consecutive quarterly loss for the struggling jet maker.
The Jan. 5 explosion on an Alaska Airlines flight prompted Boeing to halt global operations of its iconic 737 Max, citing flight control issues associated with two deadly plane crashes just five years earlier. Even though he was dealing with an outage, he ended up taking on broader responsibilities.
In recent months, the Federal Aviation Administration has repeatedly found defects in Boeing's manufacturing quality. Stan Diehl, Boeing's head of civil aviation, has resigned. Mr. Calhoun plans to retire by the end of the year.
Federal regulators have barred the company from increasing production and slowed production of its 737 Max jets as it addresses quality controls. As a result, Boeing delivered fewer completed aircraft, to 83 in the first quarter, down 36% from the same period last year.
Calhoun warned employees that production would be further delayed as the company works on quality control.
“We are using this period to intentionally slow down our systems, stabilize our supply chain, strengthen our factory operations, and position Boeing to deliver the predictability and quality our customers demand over the long term. , which is being used, albeit with difficulty,” Calhoun said. letter.
Calhoun told CNBC on Wednesday that Boeing expects production to return to “normal order” in the second half of this year. Ultimately, he said, Boeing still expects to meet the long-term cash flow goals it had before the current problems.
Boeing's production problems are also spreading to the aviation sector. United Airlines reported a $200 million loss in the first quarter due to the emergency grounding of its Max 9 planes. Southwest Airlines said Boeing's deliveries were lower than expected and it may have to offer fewer seats and rethink its spending.
