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Boeing Co. faces “serious challenges” and an uncertain outlook as it seeks to restore confidence, the company’s boss, Dave Calhoun, acknowledged Wednesday as the company announced its latest financial results.
Confidence in the airline has been shaken since a panel on one of its 737 Max 9 planes broke in mid-air.
The incident raises new questions five years after two fatal crashes involving other versions of the company’s planes.
Mr. Calhoun is trying to show the company is taking the situation seriously.
In a call with financial analysts, he apologized and said the company would take responsibility no matter how a formal investigation into the cause, which is currently underway, concludes.
“We are the ones who caused the problem and we understand it,” he said. “We have to do better.”
The company’s quarterly update to investors comes after an accident on an Alaska Airlines flight that scared passengers and forced an emergency repatriation at the Portland, Oregon, airport, with no serious injuries. This is the first time since the accident.
Mr. Calhoun previously blamed it on a “high-quality escape.”
Reports suggest the panels were improperly installed when the plane left Boeing’s factory.
The move has brought new scrutiny to the company’s manufacturing performance, which critics say has worsened as the company pushes to cut costs and shorten delivery times.
The US Federal Aviation Administration (FAA) has launched an investigation into Boeing’s manufacturing processes and banned the company from expanding production of its popular 737 aircraft.
Some of the company’s major airline customers also expressed concern, saying the issue could delay approval of new versions of the 737 aircraft in development.
Mr. Calhoun said the company would follow the guidance of regulators.
He said: “We are aware that any moment that can impact delivery times can be frustrating for customers and investors, but quality and safety must come first.” .
“We’re going to go slow to go fast, and if that’s necessary, we’re going to encourage and reward employees who speak up to slow things down,” he said.
On a conference call with investors, Mr. Calhoun limited his prepared remarks to the company’s response to the Alaska Airlines emergency.
The company also said it would not provide formal financial guidance for fiscal 2024.
“While we often share and update our financial and operational goals at this time of year, now is not the time,” Calhoun said in a letter to staff accompanying the financial statements.
Analysts asked Mr. Calhoun how the turmoil would affect the company in the coming years, with one analyst saying the spotlight was on the company after the crash in 2018 and 2019. Afterward, he questioned how the blunder happened.
The emergency has sparked calls among aviation safety activists for new leadership and for the removal of Calhoun, who has served on the board since 2009 and became chief executive after the recent accident. There is.
“They had a chance. They failed. They can’t or won’t do the job, so they should go,” said the man who lost his daughter in the Ethiopian Airlines Boeing 737 Max 8 crash. said Michael Stumo, now a vocal airline safety advocate.
The manufacturing giant is currently producing 737 aircraft at a rate of 38 aircraft per month, according to its latest investor information for the September-December period.
Revenues rose 10% to $22 billion, but the company’s loss narrowed to $283 million in the quarter.
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