Boeing lost $2.4 billion in three months as per the official statement released by the company. The CEO has deemed it to be a prolonged impact of coronavirus that resulted in many layoffs and salary reductions. (about 10% of its workforce was cut off). The pandemic has slowed down the coverage of production costs as the flights were not operational that has caused a severe blow to the revenues. A company of Boeing that produced six 787’s a month is only down to 10! It is also in anticipation that the Boeing will be reducing its widebody aircraft to 5 per two months to 777.
Boeing stock was p in the stock market but fell down to 4% recently and to make matters worse, it has only been able to produce 20 commercial airplanes that are its lowest since 1977. However, to release the pressure of the issue Being has stopped paying investors their dividends at the moment and has also halted in buying back its stock. Furthermore, the staff has been reduced but even so, it literally doesn’t seem enough as the funds are drying out and urgent measures to have liquid cash in the market has become a prerequisite for survival