Boeing losses reached US$2.4 billion in the second quarter and the company will slow production and cut more jobs as demand for commercial aircraft withers in the pandemic.
"The reality is the pandemic's impact on the aviation sector continues to be severe," CEO David Calhoun said. "This pressure on our commercial customers means they are delaying jet purchases, slowing deliveries, deferring elective maintenance, retiring older aircraft and reducing spend -- all of which affects our business and, ultimately, our bottom line."Calhoun said it will take around three years to return to 2019 passenger levels.
The company said it is still carrying out layoffs outlined earlier this year, and Calhoun said Wednesday that the reduction in airplane production and lower airline demand for Boeing services "means we'll have to further assess the size of our workforce." Boeing said in April it would reduce its workforce by 10%, or about 16,000 jobs.
The second quarter would have been worse for Boeing if not for its defence and space business, which depends on contracts with governments and has been largely insulated from the pandemic. Revenue in that business was flat with a year ago. The company has been forced to lay off thousands of workers, cut spending and suspend its dividend and share buybacks. It also issued $25 in new debt on the private market, which avoided the need to take coronavirus-relief money from the federal government this spring.
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