Significant Financial Charges Projected
Boeing is bracing for additional financial setbacks tied to Starliner losses, according to preliminary fourth-quarter 2024 results. In a January 23 press release, the aerospace giant announced $1.7 billion in projected charges against earnings across its Defense, Space, and Security division.
Among these charges, the KC-46A tanker and T-7A trainer aircraft account for $800 million and $500 million, respectively. The remaining $400 million covers Starliner, along with the VC-25B presidential aircraft and MQ-25 drone programs. These charges follow Boeing’s third-quarter results in October, where Starliner accrued $250 million in losses. Despite the upcoming financial disclosure set for January 28, Boeing has not provided further details about the latest Starliner-related costs.
Starliner Delays and Operational Challenges
The Starliner program, a collaboration with NASA, has faced persistent hurdles. Following the spacecraft’s uncrewed return to Earth in September 2024, NASA and Boeing have released limited updates about its progress. Concerns over thruster performance during the Crew Flight Test mission led NASA to extend the stay of astronauts Butch Wilmore and Suni Williams aboard the International Space Station (ISS). The spacecraft landed safely in White Sands, New Mexico, but operational timelines remain uncertain.
NASA has opted to postpone Starliner’s first operational mission until after 2025, relying instead on SpaceX’s Crew Dragon for immediate ISS missions. The Crew-10 mission is slated for March 2025, with Crew-11 following later in the year. In October, NASA stated that Starliner’s next flight would depend on Boeing’s progress toward system certification, leaving a 2025 launch window as a tentative goal.
Future Uncertainties in Boeing’s Space Ventures
Amid mounting challenges, Boeing has hinted at restructuring its operations. During an October earnings call, CEO Kelly Ortberg suggested the company might streamline its portfolio by scaling back involvement in areas outside core commercial aviation and defense. While no specific decisions have been announced, the move reflects Boeing’s intent to focus on efficiency and primary objectives.
Adding to the speculation, a January 23 report from venture firm Space Capital predicted that both Boeing and Airbus might divest their space divisions this year. Such a shift, the report argued, could reshape the space industry, creating both opportunities and uncertainties in government-backed space capabilities.
As Boeing prepares to reveal its official fourth-quarter results, the aerospace industry is closely monitoring how the company navigates the financial and operational challenges posed by Starliner losses and its broader space ambitions.