Peter McNally, head of global analyst at Third Bridge, spoke on “The Big Money Show” about how the Boeing factory workers' strike is impacting business.
Approximately 33,000 unionized workers in the Pacific Northwest remain on picket lines, affecting production of several types of Boeing aircraft.
Boeing employees from the International Association of Machinists and Aerospace Workers (IAM) went on strike in mid-September, disrupting production of some of the company's commercial and military aircraft.
“Aircraft production in Washington State will be temporarily suspended, including work on the 737 MAX, 767, 777/777X, P-8, KC-46A Tanker, and E-7 Wedgetail at manufacturing sites in Washington and Oregon. work will also be temporarily suspended,'' a Boeing spokesperson told FOX Business.
Workers picket outside a Boeing Company facility during a strike on Monday, September 16, 2024, in Everett, Washington, United States. Boeing factory workers have quit their jobs for the first time in 16 years, halting production across the plane maker's Seattle area. Huh (M. Scott Brauer/Bloomberg via Getty Images/Getty Images)
“Employees not represented by this union will continue to report to work as usual,” a spokesperson said, adding that the IAM strike “does not impact 787 production in South Carolina.”
Boeing cuts 10% of its workforce, halts most 767 production during union strike
The 737 MAX is a key part of the Virginia-based company's business.
Boeing 737 Max on display during the Paris International Air Show at Paris Le Bourget Airport on June 20, 2023. (Photo by: Geoffroy Van der Hasselt/AFP) (Photo by: GEOFFROY VAN DER HASSELT/AFP via Getty Images) (GEOFFROY VAN DER HASSELT/AFP via Getty Images/Getty Images)
Meanwhile, Boeing said the next 777X should be “the world's largest and most efficient twin-engine jet.”
On Friday, CEO Kelly Ortberg said the aircraft was facing delivery delays due to “the challenges we faced during development, as well as flight test pauses and ongoing work stoppages.” Ta.
A Boeing 777X flight test aircraft is moved at the Everett Distribution Center on June 26, 2024 in Everett, Washington. The latest addition to Boeing's popular 777 family, the 777X, has received orders for more than 500 planes, even though it has not yet gone on sale. (Jennifer Buchanan/Pool/AFP via Getty Images/Getty Images)
Boeing expects to deliver its first 777-9 in 2026 and its first 777-8 freighter in 2028, according to preliminary third-quarter results released Friday. Previously, the goal was to launch the 777-9 in 2025.
The company expects pretax profit from the 777X program to be $2.6 billion in the third quarter due to flight test delays and strikes.
Airlines such as Emirates, Qatar Airways and Korean Air have ordered 777X aircraft from Boeing.
At the same time as announcing the new schedule for the 777X, Ortberg also outlined additional measures to keep them competitive, including sharply reducing production of the 767 freighter and laying off 10% of Boeing's workforce. This was linked to efforts to strengthen finances.
CLICK HERE TO GET FOX BUSINESS ON THE GO
“Our business is in difficult times, and the challenges we face together cannot be overstated,” he said in a letter to Boeing staff. “In addition to navigating the current environment, rebuilding the company will require difficult decisions and structural changes to ensure we remain competitive and able to serve our customers over the long term.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 148.99 | -2.03 |
-1.34% |
Separate from the KC-46A tanker, production of the 767 freighter is scheduled to end in 2027, Boeing said.
In the commercial aircraft division, pre-tax costs for the 767 freighter are expected to be $400 million in the third quarter, “this also reflects the impact of the suspension of operations at IAM,'' the company said in a preliminary statement. stated in the announcement.
Overall, Boeing said third-quarter revenue would be $17.8 billion. Meanwhile, the company said it had a loss of $9.97 per share.
CHICAGO – NOVEMBER 28: The Boeing logo hangs on the Boeing World Headquarters building on November 28, 2006 in Chicago, Illinois. U.S. durable goods orders fell 8.3% in October. Aircraft orders decreased by 45 aircraft (Scott Olson/Getty Images/Getty Images)
In addition to the ongoing strike, the airline is also recovering from a setback in January when a door plug panel was blown off during a flight on a Boeing 737 MAX.
NTSB issues 'urgent' safety alert regarding Boeing 737's rudder system
Boeing is expected to officially release its third-quarter results in just over a week, and analysts and investors will be watching closely.
The company has already announced deliveries of civil and defense aircraft for the quarter, with 116 aircraft for the former and 34 for the latter.
