Boeing is in the midst of one of its worst financial crises in recent history, reporting a staggering $6.17 billion loss for Q3 2024. This marks one of the aviation giant's most challenging quarters since 2018, as it grapples with ongoing financial difficulties stemming from the notorious 737 Max accidents, compounded by a debilitating six-week-long strike by over 33,000 union machinists. 

The strike, which has significantly disrupted Boeing’s ability to produce new aircraft, particularly the 737 Max, shows no signs of ending soon. In a union vote, 64% of machinists opted to continue the strike, rejecting Boeing’s latest contract offer despite its inclusion of a 35% pay raise over four years and a $7,000 ratification bonus. A major point of contention remains Boeing’s refusal to restore the pension plan frozen a decade ago, a key demand for many union members who have faced stagnant wages and rising inflation. 

New CEO Kelly Ortberg’s Strategy 

Boeing’s new CEO, Kelly Ortberg, who stepped into the role in August 2024, is attempting to steer the company through turbulent times. His vision includes not only addressing the immediate crisis but also reforming Boeing’s corporate culture, which has been under scrutiny since the 737 Max debacle. 

Ortberg has proposed a “reset” in labor relations, hoping to rebuild trust between management and the workforce. One of his key strategies involves getting management more involved on the factory floors to better understand the day-to-day challenges faced by workers. Ortberg expressed optimism that the union will eventually approve Boeing's contract offer, though the ongoing strike suggests a deeper divide remains. 

However, Ortberg's challenges extend beyond labor disputes. Boeing's financial stability is at risk, and layoffs have already been announced as part of an effort to stave off bankruptcy. Raising capital is now a top priority for Ortberg, as the company faces growing debt and needs to convince federal regulators that it has addressed critical safety concerns—especially regarding the 737 Max—before production can fully resume. 

Union Demands and Boeing’s Path Forward 

The union’s demands for a stronger pension and more robust wage increases reflect deep dissatisfaction with Boeing’s current offerings. Workers have felt the strain of inflation and argue that Boeing’s proposal, while including significant raises, falls short in providing long-term security, especially for retirees. 

Despite the challenges, Ortberg remains hopeful. He points to Boeing’s extensive airplane order backlog as a potential lifeline, suggesting that if the company can resolve its labor disputes and production issues, it could leverage this demand to fuel a long-term recovery. 

102.7 KORD logo
Get our free mobile app

"We recognize the loss of trust and performance issues that have brought us to this point," Ortberg said. "But we also know that Boeing still has strengths we can build upon. This is about not just getting back on track but becoming a stronger, more resilient company." 

As the strike continues and Boeing works to regain its financial footing, the road ahead is uncertain. But with new leadership and a focus on reform, the company is poised to attempt a turnaround—if it can successfully navigate the complex challenges it currently faces. 

Plane Crashes Near Bellevue, Washington