Boeing Has Lost $32 Billion Since 2019, But It Won’t Shut Down

Few companies have lost more than the $32 billion that Boeing has lost in the last five years. And fewer companies could lose that kind of money and not be facing bankruptcy — or worse.

Boeing, despite its many woes, has a backlog of orders for more than 5,600 commercial jets worth $529 billion. I Photo: Can Pac Swire Flickr

That’s because the company is part of a unique duopoly, one of only two manufacturers of full-size passenger jets in high demand by airlines, as written in an analysis by Chris Isidore for CNN.

That means it can continue to sell, build, and deliver planes for many years to come, even with massive and well-documented problems.

“Given the dynamics of their place in the industry and the industry itself, they have the luxury of time,” said Richard Aboulafia, managing director at AeroDynamic Advisory, an aerospace and defense industry consultant.

“It’s an industry with the highest possible barriers to entry and very strong demand for its products. But they’ve wasted a lot of that time.”

Boeing, despite its many woes, has a backlog of orders for more than 5,600 commercial jets, worth $529 billion. That’s years’ worth of orders.

The problem is that Boeing has reduced its pace so much to address quality issues; it can’t make enough planes a year to turn a profit. “Can the current situation go on forever? No, it can’t,” said Ron Epstein, aerospace analyst for Bank of America.

“That being said, they have some leeway. They’re not going to be in trouble tomorrow.”

Boeing management says it is focused on fixing its well-documented safety and quality issues — like the missing bolts that led to an in-air fuselage blowout in January — rather than projecting when it will return to profitability.