Boeing has now formally informed the world that it may now be in a “forward loss position” on the Boeing 787 and Boeing 777X aircraft programs. Let’s translate that into English from accountant-speak. What it really means is that the company will likely never make a profit on those two aircraft programs.
This was expected for the 787, which incurred massive development costs during a three-year delay, followed by a safety grounding after entry into service. The 777X simply hasn’t sold well, and while Boeing has not yet established a formal accounting block for the program, it is clearly costing much more money than planned. With an anticipated low production rate of two per month, the demand for 777X is substantially lower than what Boeing initially expected.