Why did Boeing's operating profit plummet in 2024?

Boeing's operating profit plummeted in 2024 due to a combination of factors:

1. Challenges in Commercial Airplanes Segment: The company's Commercial Airplanes segment faced significant headwinds, including production issues, cost overruns, and delivery delays. The segment reported an operating loss of $4.02 billion in Q3, reflecting the impact of the International Association of Machinists and Aerospace Workers (IAM) work stoppage. Additionally, the segment's revenues declined by 5% year-over-year to $7.44 billion, primarily due to reduced commercial wide-body deliveries.
2. Labor Strike Impact: The seven-week labor strike initiated by the IAM at Boeing resulted in work stoppage and production pause for some of BA’s critical programs. This strike had a detrimental effect on the company's performance, leading to a decrease in operating income and an increase in losses.
3. Quality Control Issues: Boeing has been grappling with quality control issues, particularly with its 787-jet model, which necessitated rework. These issues have contributed to the company's operational challenges and financial losses.
4. Production Rate Slowdown: The company's production rate for the 737 has been slowed due to inspections following the Alaska Airlines incident, which has impacted the company's revenue and profitability.
5. Geopolitical Factors: The global defense landscape is evolving due to heightened geopolitical tensions, which has led to increased spending on defense. However, the impact of these factors on Boeing's operating profit is not directly quantified in the available data.

In summary, Boeing's operating profit plummeted in 2024 due to challenges in its commercial airplanes segment, labor strike impact, quality control issues, production rate slowdown, and geopolitical factors. These factors combined to create a perfect storm that resulted in significant financial losses for the company.