Boeing posts rare quarterly loss
NEW YORK >> Boeing, absorbing billions in write-downs related to two of its newest commercial jets and a military fuel tanker, reported its first quarterly loss in nearly seven years.
Yet revenue for the Chicago aerospace giant rose 1 percent to $24.8 billion, and company shares rose steadily before the opening bell Wednesday.
Charges totaling $3 billion before taxes, led to Boeing’s first down quarter since the third quarter of 2009, when it lost $1.6 billion.
Boeing also signaled in a regulatory filing that it might soon end production of its iconic 747. The double-deck jet — known as the Queen of the Skies — revolutionized air travel by making it more affordable for the masses. The giant jet once stood alone, with more seats than any other jet and a range of 6,000 miles, longer than any other plane.
But its four engines and massive size are now seen as negatives — it burns too much fuel and airlines struggle to fill flights with 400 or more passengers. Slowing freight traffic has meant few orders for the cargo version of the plane.
“If we are unable to obtain sufficient orders and/or market, production and other risks cannot be mitigated, we could record additional losses that may be material, and it is reasonably possible that we could decide to end production of the 747,” Boeing said in the filing Wednesday.