Boeing’s Six-Year Downturn Deepens Amid Safety Concerns and Mounting Losses

The recent crash of an Indian Airlines Boeing 787-8, which resulted in the deaths of all 242 individuals on board, has brought renewed scrutiny to Boeing's safety record. The incident, which occurred shortly after takeoff from Ahmedabad Airport, marks the first fatal crash involving a Boeing 787. The aircraft involved was 11.5 years old.

Boeing has faced a series of safety issues in recent years. In December 2024, a Jeju Air Boeing 737-800 carrying 181 people crash-landed, killing 179. The 737 MAX 9 was grounded globally for inspections. As safety crises and prolonged employee strikes persist, Boeing reported a revenue of $66.5 billion in 2023 and delivered 348 commercial aircraft—down 14% and 34% year-on-year respectively. Net losses in 2024 reached $11.8 billion.

The Boeing 787, first introduced in 2011, has undergone multiple delivery suspensions due to production and design issues. Globally, China operates 26 Boeing 787-8s, mainly via Hainan Airlines (10), China Southern Airlines (10), and Xiamen Airlines (6). While the model offers fuel efficiency and long-range capability, incidents in 2013 and subsequent years have impacted its delivery and trustworthiness.

Boeing's presence in China spans over 50 years. At its peak in 2018, 25% of its deliveries were to Chinese clients. However, Airbus has now surpassed Boeing in market share, delivering 766 aircraft in 2024 compared to Boeing’s 348. Flight Butler data indicates Airbus holds a 52.2% share in China, Boeing 40.8%, and COMAC 3.5%. Boeing’s downturn has persisted for six consecutive years. Since 2019, cumulative losses have reached $35.685 billion. In Q1 2025, revenue rose 18% year-on-year to $19.496 billion, with net losses narrowing to $31 million. To ease financial strain, Boeing announced the sale of part of its Digital Aviation Solutions business to Thoma Bravo for $10.55 billion. CEO Dave Calhoun has identified 2025 as a restructuring year and plans to cut 17,000 jobs while focusing on the core commercial and defense units.