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Boeing reported $1.7 billion loss from its core operations in the first quarter, 2020,and announced plans to cut 16,000 jobs, about 10% of its staff.
According to business analysts, the company has burnt more than $20 billion due to issues such as 737MAX crisis, delay in deliveries, production cut on 787s, delays in 777x
The current market environment has given a double blow to the company as it recorded no new orders, and mounting cancellation on orders.
The company delivered only six planes to customers in April, the lowest number of deliveries since 2008,
On March 23, Boeing announced it was halting production in Washington state after an employee in one of the factories died of Covid-19. It stopped production at its other commercial airplane factory in South Carolina on April 8. While it did restart production later in the month, it is building at a slower pace due to the drop in demand from its airline customers.
“I don’t want to get too predictive on that subject, but yes, most likely,” company CEO Calhoun said in an interview on Tuesday when asked about the chance of an airline going out of business.