Boeing News – Boeing’s Revenue Has Dropped By Nearly 50% Since 2018 – $58.16B In 2020
Boeing is one of the biggest companies in the world, but
the airline giant has had a very tumultuous last couple of
years. Even before 2020’s Coronavirus pandemic, the
company was already experiencing sharp declines in various
metrics due to a major global controversy around one of its
aircraft. According to data presented by Buyshares.co.za,
Boeing’s revenue of $58.16 in 2020 was a 42.5% decrease
compared to 2018’s record-high revenue of over $101B – a
CAGR of -24.16%
Boeing’s Revenue Almost Cut In Half
Since 2018
Back in 2018, Boeing was flying high after
crossing the $100B mark in revenue for the first time in
company history. However late in 2018 and early in 2019 one
of Boeing’s new aircraft models, the 737 MAX 8,
experienced two crashes in the span of 5 months. Both
crashes put the blame on Boeing’s new MCAS flight control
system and resulted in the grounding of the entire global
fleet of the 737 MAX and orders for the new model were
either suspended or cancelled.
As a result Boeing’s
revenue dropped by 24% YoY in 2019. To further compound the
crisis that Boeing was already facing, the world was hit by
the COVID-19 pandemic in 2020 resulting in a huge downturn
for the entire travel and tourism industry. This caused
Boeing’s revenue to drop a further 24% YoY in 2020. From
2018-2020 Boeing’s revenue experienced a CAGR of
-24.16%
Boeing Falling Behind Rivals
Airbus
The entire airline industry was significantly
impacted by the pandemic of 2020. Many countries closed
their borders to protect their citizens from the onslaught
of the pandemic putting a halt to global mobility. As a
result, both aircraft providers suffered significant drops
in revenue in 2020 with airbus experiencing a 37% YoY
drop.
However, Boeing’s problems began prior to 2020
and 2019’s safety issues are still causing Boeing to lag
behind Airbus in orders and deliveries. In 2020, Airbus
registered 383 gross orders compared to Boeing’s 184.
After calculating for contractual adjustments and
cancellations Boeing’s Net Orders falls considerably to
-1194 for 2020, compared to Airbus’ 268.
In 2020
Airbus also delivered almost 400 more aircraft than Boeing,
amounting to 566 and 157 respectively.
Boeing Cut
Costs in 2020 In Response to Pandemic
As a form of
damage control, Boeing initiated a few cost-cutting
initiatives in 2020. Boeing cut R&D expenditure by 23%
YoY in 2020 its lowest allocation since 2005. Boeing is the
larger employer of the two aircraft manufacturers with a
workforce of 141,000 in 2020, after downsizing by 20,000
from 2019.
You can read more about the story
with more statistics and information at: https://buyshares.co.za/blog/2021/04/07/boeings-revenue-has-dropped-by-nearly-50-since-2018-58-16b-in-2020/
© Scoop Media
Boeing News – Boeing’s Revenue Has Dropped By Nearly 50% Since 2018 – $58.16B In 2020
Tags: Boeing News