Boeing delays 777X deliveries again as it posts record annual loss

Boeing delayed the entry of its wide-body 777X jet into commercial service by another year and posted a record net loss of nearly $12bn for 2020, even as it began delivering the 737 Max to customers last month. The company will not start delivering the 777X — which can seat 384 passengers — to airlines until late 2023, and has taken a charge of $6.5b to reflect the programme’s decreased productivity. Several other charges brought the total for the quarter to $8.3b. The aerospace manufacturer attributed the delay to diminished demand because of Covid-19 and customer requests to take planes later, as well as an updated assessment of how long it will take aviation regulators to certify the plane. David Calhoun, CE, told investors that Boeing planned to make design changes to the jet’s actuators, which convert electrical signals to mechanical movement, as well as the software that controls them, based on global regulators’ requirements. “This schedule, and the associated financial impact, reflects a number of factors,” Calhoun said. “We remain confident in the 777X.” The market’s demand for wide-body jets was already softening before the pandemic hit. The outbreak has further deflated the appeal of larger jets to airlines as passengers’ appetite for international travel has lagged behind their return to domestic flights. <br/>