As known from:
CoinWireICOBenchCoinCodex
Write a Review
Write a Review
Nothing Found
Contains commercial content
TradersBest.com / Boeing Grounded As Issues Mount

Boeing Grounded As Issues Mount

Publish Date: 29/10/2020

With the ongoing COVID-19 pandemic, one of the sectors to take the largest knock would undoubtedly be the aerospace industry. Global travel has become a luxury of yesteryear and domestic flights have also been limited. The Chicago based company, Boeing, have seemingly taken the brunt of this knock as their third quarter comes to a close.

Job Cuts and Profit Slumps

For the first time in its history, Boeing reported a fourth straight quarter of losses this week. The decision taken by almost every major airline in the world to ground their fleet has proven to be  devastating for the U.S. aerospace giants. On Wednesday a remarkable $466 million of loss was reported. The majority of profit accrued by the company comes as result of new aircraft sales, a department which will surely be under enormous stress as airlines seek a bail out from governments as opposed to a new 737.

The company Chief Executive Officer, Dave Calhoun, has made employees aware that a possible 30,000 jobs will be cut in order to minimise their costs. This is likely to be done via buyouts, attrition or layoffs. Estimates have led Boeing to believe that air traffic will end the year at a maximum of 35% relative to the end of 2019. This has forced a major decline in production and focus to be shifted towards jet development.

Following the catastrophic accidents in early 2019 where two 737 MAX’s claimed the lives of 346 people, the chain of events involving the COVID-19 pandemic has seen the company take on a total of $61 billion of debt. The third quarter results were released just ahead of the U.S Federal Aviation Administration was expected to lift the ban imposed on the 737 MAX. “With the 737 MAX inching closer to return to service around year-end, we do not expect Boeing to back away from targets for positive free cash flow in 2021 and delivering more than 50% of the 737 MAXs in inventory.”, says Seth Seifman, an analyst at J.P. Morgan.

Stock Price Struggles Continue

While the losses for the past three months were less than anticipated, they have been to the tune of $401 million. During this week the stock price opened at a value of $167.38, at the time of writing, the price is now $150.73. A 9.95% decrease in the space of a week, this caps off a year that has seen the stock price come to less than a half of its former value. Revenue fell to a total of $14.1 billion, which is a 29% decrease to what it was a year ago. Fortunately the loss in revenue was less than anticipated and the decline has come during a period where almost every industry has had to undergo a period of loss.

As the company prepares to release its flagship 737 MAX once more, investors can only hope for a profitable fourth quarter to give the aerospace industry some much needed momentum.

Read Also
New Covid Variant Causes Massive Stock Slump
The Dow Jones was hit by its biggest fall in 13 months ...
US Economy Finally Bouncing Back After Pandemic
The US stock market reacted positively to indications that the nation’s economy ...
US Airline Stocks Soar After Travel Restrictions Eased
This week saw the US opening its doors to vaccinated travellers from ...
European Low-Cost Airlines are Bouncing Back Post-Pandemic
Despite support packages that have been deployed by governments around the world, ...
Travel Stocks Rise as UK Relaxes Covid Rules
FTSE 100 travel stocks saw a surge this week amid as the ...
Latest News
Study: how do finances shape our love life?
Do we find someone less attractive if they're ...
Is FTX Bankrupt? 
The crypto market has seen a drastic change ...
Disney Shares Jump 6% After Positive Earnings Report
A booming subscriber base and the return of ...
Alibaba Posts Flat Revenue Growth But Stock Still Jumps 6%
Chinese ecommerce giant Alibaba posted its first earnings ...
Intel Stock Slumps Over 8% Following Weak Earnings Report
Chip-maker Intel suffered a disastrous end to last ...
Top Forex Sites
Ally Invest
Ally Invest
Ally Invest Review
4.8/5
Webull
Webull
Webull Review
4.6/5
Kraken
Kraken
Kraken Review
4.3/5
Nadex
Nadex Review
3.6/5
Interactive Brokers
Interactive Brokers Review
4.8/5
Receive the latest trading news by email + our free eBook
Crypto eBook EN
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Receive the latest trading news by email + our free eBook
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPG
Close
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site