Boeing’s (NYSE: BA) stock price fell slightly after posting a record annual loss of $12 billion, driven by the impact of COVID-19 and 737 MAX grounding.
The world’s largest planemaker missed revenue and earnings estimate for the fourth quarter by $60 million and $13.57 per share. Despite that, investors have moved their focus towards modification program and resumption of 737 Max operations.
European regulators permitted Boeing to resume 737 Max flights across Europe after imposing a ban for almost two years.
“Following extensive analysis by EASA, we have determined that the 737 MAX can safely return to service. This assessment was carried out in full independence of Boeing or the Federal Aviation Administration and without any economic or political pressure,” said EASA executive director Patrick Ky.
The US Federal Aviation Authority has cleared 737 Max to return in operations in November, and several US-based air passenger carriers have resumed 737 Max flights in December.
Tough time could extend into 2021
Boeing’s chief executive officer Dave Calhoun, who stated in the second quarter that air passenger traveling is likely to take two to three years for a full recovery, still expects air traveling to remain under pressure in 2021.
“While the impact of COVID-19 presents continued challenges for commercial aerospace into 2021, we remain confident in our future, squarely-focused on safety, quality, and transparency as we rebuild trust and transform our business,” Dave Calhoun said.
Its fiscal 2020 revenue of $58 billion fell 24% from the past year, and loss per share came in at $20.88. The company ended fiscal 2020 with a total backlog of $363 billion.
To improve performance in challenging times, the company is working on the strategy of improving its organizational structure, product portfolio, infrastructure footprint, overhead, and investment mix.
Boeing’s stock price is down 37% in the last twelve months, and shares are down significantly from an all-time high of $420.
Featured image via Boeing’s media room, Paul Weatherman photo