Boeing lost $2.4 billion in the second quarter and the company will slow production and cut more jobs as demand for commercial aircraft shrinks during the coronavirus pandemic.
The loss was far worse than Wall Street expected; so was the decline in revenue, which fell 25%.
Global air travel is recovering more slowly than expected and it will take until 2024 to return to pre-pandemic levels, the trade association for the airline industry said Tuesday.
The International Air Transport Association pushed back its prediction by one year due to the slow containment of the outbreak in the U.S. and in developing countries.
United Airlines is warning 36,000 employees – nearly half its U.S. staff – they could be furloughed in October, the clearest signal yet of how deeply the virus pandemic is hurting the airline industry.
The outlook for a recovery in air travel has dimmed in just the past two weeks, as infection rates rise in much of the U.S. and some states impose new quarantine requirements on travelers.