Boeing, one of the largest aerospace manufacturers, recently reported substantial financial losses associated with its CST-100 Starliner program. The company announced yet another loss of $250 million, compounding the staggering total to approximately $1.85 billion since the project’s inception.
The latest hit to Boeing’s earnings came during its third-quarter financial disclosures, where it attributed the increased financial burden to "schedule delays and higher testing and certification costs." These issues have plagued the Starliner project, which has been riddled with technical challenges, including problems with the spacecraft's thrusters and helium leaks, negated the promise of initial launches.
It’s important to note the financial struggles of the Starliner project are only one part of the broader challenges Boeing faces. The new CEO, Kelly Ortberg, emphasized during the earnings call earlier this week the company is not planning to abandon any of its existing contracts, even those losing money. Ortberg stated, "Even if we wanted to, I don't think we can walk away from these contracts. These are our core customers who need this capability." His comments signal Boeing’s commitment to seeing through difficult projects, regardless of the financial drain they might represent.
June saw the Starliner spacecraft successfully dock with the International Space Station (ISS) during its first crewed test flight, receiving praise during the mission as it completed numerous planned tasks. Yet, the celebration was short-lived as technical hitches led to extended delays before the spacecraft could safely deliver its crewmembers back to Earth. Following the issues, NASA opted to return the astronauts aboard SpaceX's Crew Dragon capsule instead, pushing back their homecoming to February 2025.
Astronauts Suni Williams and Butch Wilmore, who were the first to pilot the Starliner, faced unexpected extended durations aboard the ISS. They had anticipated returning shortly after launch but were stuck waiting due to malfunctions and technical concerns. The Crew Dragon’s Crew-8 included different astronauts who had completed rotation arrangements independent of the Starliner's mishaps. Williams and Wilmore, instead, will make their grand return on the Crew-9 mission.
While stranded, Williams has now become part of Expedition 72, taking up responsibilities aboard the station and serving as its commander since September 22. The extended stay became less of a burden than anticipated, with both astronauts capable of taking on regular activities and experiments aboard the ISS. They have demonstrated resilience and adaptability, capable of managing their experience amid uncertainty and delay.
Simultaneously, Boeing has been facing deep scrutiny from industry experts following earlier incidents, including issues related to the safety and quality of its aircraft. Engineers must work diligently to eradicate problems such as fluid leaks and equipment malfunctions. A report released this year brought allegations from whistleblowers about inadequacies at the company's manufacturing process, raising questions about Boeing's commitment to safety standards. Boeing, already battered by the fallout from the 737 Max crises, is working to restore its reputation among regulators and consumers.
Another front where Boeing's difficulties are manifesting is within its workforce. Since mid-September, company employees have been on strike, demanding more substantial pay increases than what has been proposed by Boeing management. Employees rejected multiple wage proposals of 25% to 35%, insisting on raising their pay by 40%. With the strike enduring, it has raised concerns about the workforce's morale and productivity, potentially aggravate the current issues Boeing faces.
Boeing's stock has also taken quite a nosedive, falling nearly 40% year-to-date. The company's net loss for the third quarter reached up to $6.1 billion, following the more than $1.4 billion loss from the preceding quarter. Industry analysts are closely monitoring these financial metrics for signs of recovery.
Despite the grim outlook, Boeing remains steadfast on making significant adjustments to bounce back. Ortberg insists there is no quick solution to the myriad difficulties the company faces, indicating a long process of reorganization and re-evaluation lies ahead. With contracts in place with both NASA and the United Launch Alliance, Boeing aspires to uphold its obligations even during challenging times.
All considered, thanks to the perseverance of the astronauts aboard the ISS and Boeing’s resolve to keep supporting its contracts, the company faces challenges through teamwork and commitment to return productivity back to normal levels. The outcome of the Starliner project and the overall future of Boeing will depend much on the effectiveness of the adjustments and the stringent adherence to safety protocols moving forward.
