Boeing has reported $641m in losses in Q1 of 2020 and used $4.3bn in cash as the company tries to stay afloat amid the ongoing Covid-19 coronavirus pandemic.
Across the board, the company’s deliveries of defence and commercial products were down, with the company delivering 39 defence systems in Q1 2020, compared with 60 in the same quarter of 2019.
Despite the drop in defence deliveries, Boeing’s defence business has stayed relatively stable, something Calhoun said would help the company ‘limit the overall depth of the cut’ caused by the fallout from Covid-19.
The results came days after Boeing pulled out of a deal to establish joint ventures with Embraer, which would have seen the two companies work together on commercial products, and explore new markets for the C-390 Millennium medium airlift and air mobility aircraft.
In a letter to staff, Boeing president and CEO Dave Calhoun addressed the poor results. Calhoun said: “The pandemic is also delivering a body blow to our business — affecting airline customer demand, production continuity and supply chain stability.
“The demand for commercial airline travel has fallen off a cliff, with US passenger volumes down more than 95% compared to last year. Globally, commercial airline revenue is expected to drop by $314bn this year.”