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Boeing loss in June Quarter Bigger than expected

Boeing had suffered a huge loss in the latest quarter, the company had announced Wednesday. The company also had signaled towards additional job cuts as it contends with a protracted air travel downturn amid the coronavirus pandemic. The aerospace major, who had previously suspended the dividend for shareholders and announced a 10 percent staff downsizing, also said it would phase out production of the iconic 747 jumbo jet and ratchet back production plans on other commercial aircraft due to the weak outlook.
“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,” chief executive Dave Calhoun said in a message 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.” (Source : ndtv)
These results of the latest quarter had battered state of commercial aviation following lockdowns and travel restrictions imposed to limit the spread of the coronavirus. It came onto the heels of deep losses by leading US carriers that have announced belt-tightening plans of their own that will remove tens of thousands of jobs.
Airlines have supposedly canceled orders, suspended deliveries and deferred maintenance. Boeing delivered just 20 planes during the quarter, down from 90 in the year-ago period. The company reported a $2.4 billion loss in the quarter ending June 30 as revenues plunged 25 per cent to $11.8 billion.
The hit from coronavirus has prolonged and worsened Boeing’s slump due to the crisis surrounding the 737 MAX, which was grounded globally in March 2019 following two deadly crashes. Boeing had stated that it was making “steady progress” towards getting the MAX recertified to fly, after the Federal Aviation Administration completed test flights earlier this month. That process, too, was delayed by the pandemic.