Boeing has “more work to do” to improve safety and quality processes, chief executive Dave Calhoun told staff amid the continued fallout from the Alaska Airlines 737 Max 9 panel blowout.
He gave a message to staff as the US aircraft manufacturer posted a reduced fourth quarter 2023 net loss of $30 million against $663 million in the same period in 2022.
Annual losses for last year were halved to $2.2 billion as revenues grew by 17% to $77.8 billion.
Boeing’s commercial aircraft arm swung back into the black in the final three months of 2023 with earnings of $41 million against a loss of $603 million in the last quarter of the previous year as revenues rose by 13% to $10.5 billion.
Aircraft deliveries for the year were up by 10% to 528 as annual losses for the division were trimmed to $1.6 billion from $2.3 billion.
A total of 157 aircraft were delivered during the final quarter, with a backlog of more than 5,600 valued at $441 billion.
Boeing said: “The company continues to co-operate transparently with the FAA [Federal Aviation Administration] following the Alaska Airlines Flight 1282 accident involving a 737-9.”
Its commercial aircraft arm “is taking immediate actions to strengthen quality on the 737 programme, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality”.
The company reaffirmed that an outside expert had been drafted in to lead an in-depth independent assessment of quality management system.
Boeing continues to deliver 737s at a production rate of 38 per month.
No projection of 2024 financial or delivery performance was given. Neither did the company offer any forecast on the impact of the Alaska Airlines incident.
Calhoun told employees: “While we often use this time of year to share or update our financial and operational objectives, now is not the time for that.”
He said: “While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day.
“As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders.”
In the message to staff, Calhoun added: “While we report our fourth quarter and full year 2023 results today, my focus remains on the Alaska Airlines Flight 1282 accident and the actions we are taking as a company to strengthen quality at Boeing.
“We’ve taken significant steps over the last several years to strengthen our safety and quality processes, but this accident makes it absolutely clear that we have more work to do.”
He admitted to having had “tough and direct conversations” customers, regulators and lawmakers in the wake of the January 5 accident.
“They are disappointed and we have much to prove to earn our stakeholders’ confidence,” Calhoun said. “There is no message or slogan to do that. It will take transparency and demonstrated action – that starts with each of us along with a commitment to listening to each other and speaking up.
“We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator and ensure the highest standard of safety and quality in all that we do. Ultimately – that is what will drive our performance.
“As we go about that work, I want to be clear that we still have every confidence in our recovery. I have confidence in you and I have confidence in Boeing. We have a serious challenge in front of us – but I know this team is up to the task.”