Boeing Hit With $4.9BN Charge After Another 777X Delay Pushes Plane Debut To 2027

Boeing announced a $4.9 billion accounting charge and a significant delay for its 777X jetliner, now slated for a 2027 service entry. This setback overshadowed third-quarter earnings, resulting in a wider-than-expected loss per share. Despite this, Boeing reported better-than-anticipated revenue and achieved positive free cash flow of $238 million, a milestone not seen since late 2023. The company also increased 737 production to 42 jets per month, following regulatory approval. The 777X program has now incurred nearly $16 billion in total charges and is seven years behind schedule due to escalating costs and regulatory scrutiny. This charge reflects the program's "reach forward-loss" status under Boeing's accounting methods. While disappointed by the 777X delay, CEO Kelly Ortberg highlighted progress in the company's recovery, including positive cash flow and increased 737 production. The improved performance in 737 and 787 Dreamliner production is a positive sign, breaking from previous costly delays. Investors will be seeking further details on the impact of a factory worker strike and the certification status of new 737 Max models. Despite the 777X setback, Boeing's overall recovery is considered intact, with supply chain conditions appearing to improve.