(Reuters) – U.S. plane maker Boeing (NYSE: ) is on track to be the biggest loser in 2024, falling 32% as it bounces from one crisis to another.
Rival Airbus is up more than 11% for the year and the benchmark is up more than 23% over 2024.
Boeing shares opened the year at $257.50. However, a cabin panel explosion on Jan. 5 on a recently delivered 737 MAX operated by Alaska Airlines prompted investigations and a temporary grounding of the popular single-aisle aircraft.
By the end of the month, the US Federal Aviation Administration, citing safety and quality concerns, had limited production of the 737 to 38 planes per month, and the company’s share price hovered around $211.
The FAA has not lifted the restriction. Nonetheless, Boeing has struggled to produce close to its maximum 737 aircraft per month due to supply chain issues, quality issues and a seven-week strike that temporarily shut down most commercial production of the aircraft, including the 737 program.
Boeing also continued to post massive losses from its commercial, military and space programs throughout the year. In July, the company announced a $4.7 billion deal to buy lossmaking supplier Spirit AeroSystems (NYSE: ), which makes 737 airframes. Spirit was also plagued by production quality issues.
In August, Air Force veteran Kelly Ortberg joined Boeing as CEO, replacing Dave Calhoun.
Ortberg’s honeymoon ended in early September, when about 33,000 production workers went on strike over a contract dispute that expired in November, when the company’s stock hit a low of $137.07. During the strike, Ortberg announced plans to cut Boeing’s workforce by 10% and that the company expects to continue spending money into 2025.
A promise to cut labor costs and restart 737 production in early December helped Boeing shares partially recover to around $177 on Tuesday.
