Boeing on Wednesday reported dismal financial results as the Covid-19 pandemic and the 737 Max grounding took a toll on the plane maker’s balance sheet.
The company reported a $2.4 billion (Dh8.82bn) loss in the quarter ending on June 30 as revenues dropped by 25 per cent to $11.8bn.
The loss was bigger than many Wall Street analysts predicted.
The company based in Seattle, which previously suspended shareholder dividends and announced a 10 per cent staff cut, said further job losses were probable.
"Regretfully, the prolonged impact of Covid-19 causing further reductions in our production rates and lower demand for commercial services means we'll have to further assess the size of our workforce," Boeing chief executive Dave Calhoun wrote to to employees.
"This is difficult news, and I know it adds uncertainty during an already challenging time.
"We will try to limit the impact on our people as much as possible going forward."
Before the pandemic hit, Boeing had already been going through financial difficulties with its best-selling aircraft.
The 737 Max was grounded last March after two deadly crashes, leading to hundreds of orders being cancelled or deferred.
Although it said it was making “steady progress” in returning the narrow-body jet to the skies, the pandemic has delayed that process.
Mr Calhoun said the company would delay delivering the aircraft again until the fourth quarter, after regulatory approval, rather than the third.
"We remained focused on the health of our employees and communities while proactively taking action to navigate the unprecedented commercial market impacts from the Covid-19 pandemic," Mr Calhoun said.
"We're working closely with our customers, suppliers and global partners to manage the challenges to our industry, bridge to recovery and rebuild to be stronger on the other side."
Although the company’s stock initially rose in pre-market trading on Wednesday, the gains were quickly erased after Boeing revealed it would cut production of key aircraft types because of the pandemic.
Its commercial deliveries for the quarter sank from 90 in the second quarter of last year to 20 in the same period this year.
The aerospace giant slashed production of its biggest twin-aisled jets, delayed its 777X by up to a year and began winding down output of the 747 superjumbo as the pandemic further dampened the demand for wide-body aircraft.
The commercial aviation industry had a glut of wide-body aircraft before the pandemic hit and Boeing has long been at the centre of an escalating trade dispute between the US and China.
China had plans to buy a few hundred wide-bodies from Boeing, but it is now forcing its airlines to buy home-made jets.
Boeing said it would cut production for its 787 wide-body to six a month in 2021, down from a previous goal of seven.
It was the third such cut since a year ago when a record 14 planes were made a month.
The company said it would also cut combined output of the 777 mini-jumbo and its new 777X sister model to two a month in 2021 from a previous goal of three.
It will also delay the 777X entry to service by a year to 2022.
An analysis on Tuesday revealed that orders for new passenger aircraft fell to their lowest in a decade as the pandemic led to a collapse in global air travel demand.
Only 19 aircraft were ordered globally in the second quarter, down 97 per cent from the same period in 2019 when airlines ordered 577 jets, UK trade body ADS said.
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Killing of Qassem Suleimani
The UAE's journey to space
Getting there
The flights
Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.
The stay
Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net
Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama
Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com
RESULTS
1.45pm: Maiden Dh75,000 1,400m
Winner: Dirilis Ertugrul, Fabrice Veron (jockey), Ismail Mohammed (trainer)
2.15pm: Handicap Dh90,000 1,400m
Winner: Kidd Malibu, Sandro Paiva, Musabah Al Muhairi
2.45pm: Maiden Dh75,000 1,000m
Winner: Raakezz, Tadhg O’Shea, Nicholas Bachalard
3.15pm: Handicap Dh105,000 1,200m
Winner: Au Couer, Sean Kirrane, Satish Seemar
3.45pm: Maiden Dh75,000 1,600m
Winner: Rayig, Pat Dobbs, Doug Watson
4.15pm: Handicap Dh105,000 1,600m
Winner: Chiefdom, Royston Ffrench, Salem bin Ghadayer
4.45pm: Handicap Dh80,000 1,800m
Winner: King’s Shadow, Richard Mullen, Satish Seemar
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Killing of Qassem Suleimani
Places to go for free coffee
- Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day.
- La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
- Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
- Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee
RESULTS
5pm: Handicap (TB) Dh100,000, 2,400m
Winner: Recordman, Richard Mullen (jockey), Satish Seemar (trainer)
5.30pm: Wathba Stallions Cup Handicap (PA) Dh 70,000, 2,200m
Winner: AF Taraha, Tadhg O’Shea, Ernst Oertel
6pm: Abu Dhabi Fillies Classic Prestige (PA) Dh110,000, 1,400m
Winner: Dhafra, Fabrice Veron, Eric Lemartinel
6.30pm: Abu Dhabi Colts Classic Prestige (PA) Dh110,000, 1,400m
Winner: Maqam, Fabrice Veron, Eric Lemartinel
7pm: Handicap (PA) Dh85,000, 1,600m
Winner: AF Momtaz, Fernando Jara, Musabah Al Muhairi
7.30pm: Maiden (PA) Dh80,000, 1,600m
Winner: Optimizm, Patrick Cosgrave, Abdallah Al Hammadi
Bio
Born in Dubai in 1994
Her father is a retired Emirati police officer and her mother is originally from Kuwait
She Graduated from the American University of Sharjah in 2015 and is currently working on her Masters in Communication from the University of Sharjah.
Her favourite film is Pacific Rim, directed by Guillermo del Toro
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
No_One Ever Really Dies
N*E*R*D
(I Am Other/Columbia)
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
