Aerospace giant Boeing reported a surprise $3.3 billion third-quarter loss Wednesday as it struggled with swelling costs on several defense programs, including the US presidential jet Air Force One.
The performance woes in defense — which also affected the KC-46 refueling and military transport aircraft and the T-7A Air Force pilot training system — reflect the drag from supply chain problems that have plagued the broader economy, as well as the restrictive nature of government contracts.
Investors initially took the disappointing news in stride, but shares fell sharply after a conference call in which Boeing executives predicted a very slow ramp-up of commercial plane output and expressed doubts about resuming plane deliveries to China anytime soon.
