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Boeing has recorded another $250 million loss on its Starliner program.
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New CEO Kelly Ortberg said Boeing will not walk away from its loss-making contracts.
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Boeing has lost $1.85 billion on the Starliner program to date.
Aerospace manufacturer Boeing said on Wednesday that it was incurring an additional $250 million charge against earnings on its beleaguered Starliner program.
Boeing’s Starliner spacecraft underwent a crewed flight test in June, during which it successfully docked at the International Space Station.
However, issues with the Starliner’s thrusters and helium leaks caused the eight-day mission to drag on. The Starliner eventually returned to Earth and landed in New Mexico on September 6 without its crew members — NASA astronauts Butch Wilmore and Suni Williams.
Wilmore and Williams are set to make their return to Earth in February 2025 on a SpaceX spacecraft instead.
On Wednesday, Boeing said in its third-quarter earnings filing to the SEC that it had “increased the reach-forward loss on the program” by $250 million to “reflect schedule delays and higher testing and certification costs.”
This is in addition to the $125 million charge against earnings Boeing recorded in the second quarter of this year. Boeing has lost $1.85 billion on the Starliner program to date.
Boeing’s newly minted CEO, Kelly Ortberg, who took over the top job in August, did not comment directly on the Starliner program during an earnings call that took place on the same day.
But Ortberg told analysts on Wednesday that there is “no magic bullet” for some of the “tough contracts” Boeing has entered into.
“We’re going to have to work our way through some of those tough contracts,” Ortberg said on Wednesday.
When asked if Boeing would drop some of its loss-making contracts, Ortberg said it wasn’t a “viable option” for the company.
“Even if we wanted to, I don’t think we can walk away from these contracts,” Ortberg said. “These are our core customers that need this capability.”
Representatives for Ortberg at Boeing didn’t respond to a request for comment from Business Insider sent outside regular business hours.
The issues with Boeing’s Starliner program are one of the many challenges Ortberg faces in trying to turn things around for the aerospace manufacturer.
Boeing faced intense scrutiny in January after a door plug flew off a Boeing 737 Max 9 during an Alaskan Airlines flight from Oregon to California.
Several whistleblowers have since come forward to express concerns about how Boeing maintains its aircraft and handles faulty plane parts, according to a Senate subcommittee report on Boeing’s safety and quality practices.
Boeing’s workers have also been on strike since September 13, after workers demanded a 40% pay hike.
The company has offered to increase wages by 25%, 30%, and 35%, but workers have rejected all three proposals.
On Wednesday, Boeing reported a net loss of $6.1 billion in the third quarter of 2024. It recorded a loss of more than $1.4 billion in the previous quarter.
Boeing’s shares are down nearly 40% year to date.
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