A look at Boeing's recent troubles after Air India crash
Advertisement
737 Max
The Max version of Boeing's best-selling 737 airplane has been the source of persistent troubles for Boeing after two of the jets crashed. The crashes, one in Indonesia in 2018 and another in Ethiopia in 2019, killed 346.
Get Starting Point
A guide through the most important stories of the morning, delivered Monday through Friday.
Enter Email
Sign Up
The problem stemmed from a sensor providing faulty readings that pushed the nose down, leaving pilots unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned the system.
Last month, the Justice Department reached a deal to allow Boeing to avoid criminal prosecution for allegedly misleading US regulators about the Max before the two crashes.
Worries about the plane flared up again after a door plug blew off a Max operated by Alaska Airlines, leading regulators to cap Boeing's production at 38 jets per month.
Advertisement
Financial woes
Boeing posted a loss of $11.8 billion in 2024, bringing its total losses since 2019 to more than $35 billion.
The company's financial problems were compounded by a strike by machinists who assemble the airplanes plane at its factories in Renton and Everett, Washington, which halted production at those facilities and hampered Boeing's delivery capability.
Orders and deliveries
The stepped-up government scrutiny and the workers' strike resulted in Boeing's aircraft deliveries sliding last year.
Boeing said it supplied 348 jetliners in 2024, which was a third fewer than the 528 that it reported for the previous year.
The company delivered less than half the number of commercial aircraft to customers than its main rival Airbus, which reported delivering 766 commercial jets in 2023.
Still, Boeing's troubles haven't turned off airline customers from buying its jets. Last month the company secured big orders from two Middle Eastern customers. The deals included a $96 billion order for 787 and 777X jets from Qatar, which it said was the biggest order for 787s and wide body jets in the company's.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
The World's Largest Meatpacker Is Finally Set for Its NYSE Debut
The world's biggest meat company is set to debut on the New York Stock Exchange, riding strong earnings and American consumers' fixation on protein. Ordinarily, such a deal would draw a crowd of banks, a big roadshow and a traditional listing-day bell-ringing ceremony. JBS is going a different route, simply making its shares available to trade and letting the market take it from there. The Case for Rate Cuts Is Growing Inside ABC News's Decision to Oust a Longtime Correspondent Boeing Crash in India Is First Fatal Incident Involving a 787 Jet Chime Financial Is the Latest IPO to Soar in Debut Aerospace Startup JetZero to Start Building Futuristic Planes in North Carolina The São Paulo-based company on Friday will directly list its shares on the Big Board, aiming to cement its image as an American meat conglomerate. JBS last week delisted its shares from Brazil's São Paulo Stock Exchange, where they had traded for almost two decades. 'This step will mark a new chapter in the company's journey,' JBS Chief Executive Gilberto Tomazoni said last month. The $15 billion Brazilian meatpacking conglomerate brings to U.S. markets a sprawling global operation—and some baggage. A corruption case in Brazil ensnared two of its founding family members, who did jail time related to the affair, and environmental groups have long alleged it has driven deforestation. How JBS's listing trades will be a barometer on whether U.S. investors harbor concerns about the company, or are eager to get a piece of its prospects. JBS leaders have been trying to list shares in the U.S. since at least 2016. Company officials have said the move would help reduce its cost of capital and expand its branded product offering. JBS Chief Financial Officer Guilherme Cavalcanti said that the company isn't raising capital from the listing and that moving its shares from Brazil to the U.S. will open the company to a broader pool of potential investors. He said the company doesn't need a roadshow and regularly talks to investors at conferences. 'We are just doing bureaucratic things in changing an exchange,' Cavalcanti said in an interview. 'Why should I pay something to the bank, right, if I don't need them?' Named for founder José Batista Sobrinho, JBS began as a family-owned slaughterhouse in the Brazilian countryside. The Bastista family built JBS into a beef powerhouse in its home country, and harnessed government-backed loans to help fund an international acquisition spree that made it a global giant. JBS employs roughly 280,000 people around the world, processing protein ranging from beef to salmon and lamb. More than half of JBS's nearly $80 billion in sales now come from North America, where it is the largest U.S. processor of beef, the second-largest pork supplier and the majority owner of Pilgrim's Pride, the second-largest American chicken company. JBS reported a nearly $2 billion profit for 2024 compared with a loss the prior year, and its annual sales surpassed Wall Street analysts' estimates. The company's past efforts to list its shares in the U.S. were interrupted by market conditions following the Covid-19 pandemic, executives have said. JBS has also dealt with fallout from a corporate corruption scandal in Brazil. J&F Investimentos, which is run by the Batista family and owns about half of JBS's stock, admitted in 2017 to paying about $150 million in bribes to Brazilian politicians to help secure cheap government funding for acquisitions. Fallout from that episode landed the billionaire brothers Joesley and Wesley Batista in jail for several months. J&F in 2020 settled a corruption case with U.S. authorities, which it said was important to improving corporate governance efforts. Some of the largest American banks, including Morgan Stanley, JPMorgan Chase and Goldman Sachs, won't do business with JBS for compliance reasons, according to people familiar with the matter. A JBS spokeswoman said the company has a robust compliance program and uses a number of American, Canadian, European and Latin American banks. She said that as JBS board members, Wesley and Joesley Batista bring decades of operational experience, including turning around many of its U.S. acquisitions over the years. U.S. lawmakers and environmental groups have raised concerns over JBS's stock listing plan. Last year a bipartisan group of senators, including now Secretary of State Marco Rubio, called on the Securities and Exchange Commission to scrutinize the listing, saying it could 'subject U.S. investors to risk from a company with a history of blatant, systemic corruption, and further entrench its monopoly power.' Environmental groups have urged the SEC and NYSE to bar the listing, citing what they called JBS's record of profiting from Amazon deforestation, which the company has denied. Last month, shareholder advisory firms Glass Lewis and Institutional Shareholder Services recommended JBS investors vote against the company's listing plans. The firms said the listing could give J&F Investimentos, the company's controlling shareholder, roughly 85% of voting power in the U.S.-listed company. JBS secured approval from the SEC earlier this year. Company shareholders in late May approved a plan to restructure the company in the Netherlands and move forward with a U.S. listing. In addition to its primary New York listing, JBS will trade in Brazil through Brazilian Depositary Receipts, or BDRs. In a letter to the SEC, Michael Martino, founder of Mason Capital Management, a JBS shareholder, said that being publicly traded in the U.S. would enhance the company's governance. 'We see a company built over many years from nothing to $80 billion in sales,' Martino said. Write to Patrick Thomas at and Corrie Driebusch at Scale AI Gets Meta Investment That Values It at More Than $29 Billion Why Warner Boss Zaslav Is Having to Split Up the Media Empire He Built More Financial Advisers Are Outsourcing Investment Decisions Norway Wealth Fund Puts TD Bank Under Observation Live Q&A: Ask Us Your Air Safety Questions Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
12 minutes ago
- Fast Company
Air India crash sends Boeing's troubles back into the spotlight
The crash of a Boeing 787 passenger jet in India minutes after takeoff on Thursday is putting the spotlight back on a beleaguered manufacturer though it was not immediately clear why the plane crashed. The Air India 787 went down in the northwestern city of Ahmedabad with more than 240 people aboard shortly after takeoff, authorities said. It was the first fatal crash since the plane, also known as the Dreamliner, went into service in 2009, according to the Aviation Safety Network database. Boeing shares fell more than 4% in afternoon trading. The 787 was the first airliner to make extensive use of lithium ion batteries, which are lighter, recharge faster and can hold more energy than other types of batteries. In 2013 the 787 fleet was temporarily grounded because of overheating of its lithium-ion batteries, which in some cases sparked fires. 737 Max The Max version of Boeing's best-selling 737 airplane has been the source of persistent troubles for Boeing after two of the jets crashed. The crashes, one in Indonesia in 2018 and another in Ethiopia in 2019, killed 346. The problem stemmed from a sensor providing faulty readings that pushed the nose down, leaving pilots unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned the system. Last month, the Justice Department reached a deal to allow Boeing to avoid criminal prosecution for allegedly misleading U.S. regulators about the Max before the two crashes. Worries about the plane flared up again after a door plug blew off a Max operated by Alaska Airlines, leading regulators to cap Boeing's production at 38 jets per month. Financial woes Boeing posted a loss of $11.8 billion in 2024, bringing its total losses since 2019 to more than $35 billion. The company's financial problems were compounded by a strike by machinists who assemble the airplanes plane at its factories in Renton and Everett, Washington, which halted production at those facilities and hampered Boeing's delivery capability. For the first three months of 2025, Boeing reported a narrower loss of $31 million compared with the previous year. CEO Kelly Ortberg said Boeing made progress on stabilizing operations during the quarter. Orders and deliveries The stepped-up government scrutiny and the workers' strike resulted in Boeing's aircraft deliveries sliding last year. Boeing said it supplied 348 jetliners in 2024, which was a third fewer than the 528 that it reported for the previous year. The company delivered less than half the number of commercial aircraft to customers than its main rival Airbus, which reported delivering 766 commercial jets in 2023. Still, Boeing's troubles haven't turned off airline customers from buying its jets. Last month the company secured big orders from two Middle Eastern customers. The deals included a $96 billion order for 787 and 777X jets from Qatar, which it said was the biggest order for 787s and wide body jets in the company's.
Yahoo
an hour ago
- Yahoo
US stock futures fall after Israel launches airstrikes against Iran
U.S. stock futures tumbled after Israel launched airstrikes against Iran. Israel's defense minister Israel Katz declared a special state of emergency following the attack. Iran has launched retaliatory drone strikes on Israel. At 6:15 a.m. ET, futures linked to the blue-chip Dow slipped -1.24%, while broad S&P 500 futures dropped -1.24% and tech-laden Nasdaq futures fell -1.52%. Oil prices soared on the news. Before the attack, all three major indexes had closed the regular session higher, lifted by renewed optimism for artificial intelligence after Oracle's quarterly results topped estimates. The software company also issued a positive outlook. That was enough to overcome a slump in Boeing shares after one of its Dreamliners crashed in India. All but one person on the flight died. Adobe's results in the second quarter of the company's fiscal year topped estimates. The software company also raised its third-quarter outlook above Street forecasts. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures fall after Israel strikes Iran Sign in to access your portfolio
