Boeing has announced it expects further financial losses related to its CST-100 Starliner commercial crew program, with details set to be disclosed during the release of its fourth-quarter financial results next week.
Boeing’s Starliner spacecraft that launched NASA’s Crew Flight Test astronauts Butch Wilmore and Suni Williams to the International Space Station is pictured docked to the Harmony module’s forward port. This long-duration photograph was taken at night from the orbital complex as it soared 256 miles above the Arabian Sea off the coast of Mumbai, India. Photo credit: NASA
In a press release dated Jan. 23, Boeing provided preliminary financial projections for the fourth quarter of 2024, which include $1.7 billion in charges affecting five programs within its Defense, Space, and Security division.
The largest portions of these charges will impact the KC-46A tanker ($800 million) and the T-7A trainer aircraft ($500 million). The remaining $400 million will be distributed across the Starliner program, the VC-25B presidential aircraft, and the MQ-25 drone.
This announcement follows similar guidance from October 2024, when Boeing projected $2 billion in charges, including $1.6 billion for the KC-46A and T-7A. In its third-quarter results, Boeing reported an additional $250 million charge related to Starliner.
While Boeing did not provide specific details on the latest charges, the company plans to release its full financial report on Jan. 28.
Starliner Program Delays and Challenges
The Starliner program has faced significant delays and setbacks. After completing its uncrewed Crew Flight Test mission in September, the spacecraft safely returned to Earth, landing in White Sands, New Mexico. However, issues with malfunctioning thrusters during its journey to the International Space Station (ISS) led NASA to delay the spacecraft’s first operational mission.
NASA has since extended the use of SpaceX’s Crew Dragon spacecraft for upcoming ISS missions, including Crew-10 in March and Crew-11 later in 2025. In October, NASA announced it was postponing Starliner’s operational debut beyond 2025, pending further progress on system certification.
“The timing and configuration of Starliner’s next flight will be determined once a better understanding of Boeing’s path to system certification is established,” NASA stated. The agency has not provided updates on Starliner’s status since October.
Potential Strategic Shifts for Boeing
Boeing has also hinted at possible strategic shifts in its business. During an October earnings call, CEO Kelly Ortberg suggested the company might streamline its operations, potentially discontinuing non-core activities outside commercial aviation and defense.
“There’s probably some things on the fringe that we can be more efficient with or that just distract us from our main goals,” Ortberg said.
This has fueled speculation within the industry. A report released Jan. 23 by venture firm Space Capital predicted that Boeing and Airbus may divest their space divisions in 2025. The report described such a move as a “pivotal moment in the space economy,” potentially reshaping the industry and creating both opportunities and risks for government space initiatives.
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