A year after Boeing's door plug accident, the aircraft giant faces a steep road to recovery

Boeing's Current Situation - Boeing is undergoing a rebuilding year following safety and quality concerns, particularly after a midair incident involving a 737 Max 9 operated by Alaska Airlines [1][2] - The company's stock price has declined by over 30% in the past 12 months, while the S&P 500 has risen nearly 27% [3] - Boeing has not posted an annual profit since 2018, with cumulative losses exceeding $30 billion since 2019 [6][7] Safety and Quality Issues - A preliminary NTSB report found that key bolts were missing from the 737 Max 9 involved in the Alaska Airlines incident, further damaging Boeing's reputation [3] - The company has implemented random quality audits and reduced defects in 737 fuselages produced by Spirit AeroSystems, which Boeing is acquiring [4] - The FAA has increased oversight of Boeing, capping 737 Max production and emphasizing the need for a cultural shift prioritizing safety over profits [5] Leadership and Workforce Changes - Boeing appointed Kelly Ortberg as its new CEO in August 2024, replacing Dave Calhoun [8] - The company faced a nearly two-month strike by machinists, which ended with a new labor deal including 38% raises but no pension reinstatement [8][9] - Boeing plans to cut 10% of its workforce, approximately 17,000 employees, as part of a focus on core businesses and portfolio review [10] Production and Delivery Challenges - The machinists' strike idled production of most Boeing jets, though factories have resumed output in recent weeks [9] - Boeing is focusing on stabilizing production to meet airline demand, while Airbus continues to lead in delivery volumes [9] - The company has faced delivery delays across multiple aircraft models, including the 737 Max, 787 Dreamliner, and Air Force One 747s [7] Financial and Strategic Moves - Boeing raised billions in funding during fall 2024 to address its ongoing crisis [10] - The new CEO emphasized the need to focus on doing fewer things better rather than expanding operations [10] - Ortberg has received praise from airline executives for his hands-on approach and understanding of Boeing's challenges [11][12]