Boeing’s Shares Continue to Slide Amid Prolonged Strike

Boeing’s stock continued to decline this week after the U.S. aircraft manufacturer reported a significant drop in commercial aircraft deliveries for October.

The company’s shares fell 3% on Tuesday and were down nearly 2% on Wednesday on Wall Street. This downturn follows Boeing’s announcement that it delivered only 14 commercial airplanes in October, a sharp decrease from the 34 planes delivered in the same month last year. The decline in deliveries highlights the impact of a seven-week strike by its largest union, which disrupted much of Boeing’s production.

The strike, which primarily affected Boeing’s workforce in Washington and Oregon, ended last week but took a significant toll on the company’s operations. The production halt cost Boeing billions of dollars and stalled its recovery efforts. Despite the strike, Boeing managed to fulfill 63 new orders in October without any cancellations, increasing its official backlog from 5,410 aircraft on September 30 to 5,462 by the end of October.

To address its financial challenges, Boeing recently raised over $21 billion to shore up its debt-laden balance sheet. The company also announced a 10% workforce reduction due to ongoing production and safety challenges, which began in early January after a door plug exploded on an Alaska Airlines Boeing aircraft.

The labor strike, which began on September 13, is estimated to have cost Boeing, its employees, and suppliers nearly $10 billion in lost wages, profits, and supplier losses, according to an Anderson Economic Group report from late October. During the strike, Boeing continued production and deliveries at its South Carolina facility, utilizing certified employees to manage the work.

As the aerospace giant navigates these hurdles, the significant drop in aircraft deliveries underscores the challenges Boeing faces in stabilizing its production and financial health amid ongoing labor disputes and supply chain issues.