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The business announced a far larger-than-expected quarterly deficit and postponed the
introduction of its newest passenger plane until 2025. The aircraft manufacturer, which
had intended to begin delivering the 777X passenger plane to clients by the end of 2023,
stated on Wednesday that it will temporarily halt the start of manufacturing. Due to the
pandemic's low demand for foreign travel, long-range and widebody passenger jet
demand—which is essential to Boeing's commercial jet business—continues to be
harmed.
Boeing will incur additional expenses of $1.5 billion as a result of delaying the 777X
passenger jet, beginning in the second quarter and continuing until production is
resumed.A $660 million charge for higher supplier costs, increased expenditures to
satisfy technical requirements, and scheduling delays for the construction of the jets that
would be used as the future Air Force One planes were among the $1.2 billion in
exceptional charges that the business recorded in the first quarter. Additionally, it
includes $212 million in costs for business interruption brought on by sanctions against
Russia as a result of its invasion of Ukraine, as well as $367 million in expenses for
supply chain issues, Covid-19, and inflationary pressures on its Red Hawk combat plane.