Boeing’s Nightmare 2024 Is Over, But Will 2025 be Any Better?

To state that Boeing (BA) has had a rough 2024 is to state the obvious. Let’s be direct and say the company experienced a nightmare, a disaster movie reminiscent of George Seaton’s 1970 ‘Airport’ where multiple crises are hitting from all fronts. From tragic plane crashes and Starliner delays to a crippling workers’ strike and, consequently, leadership changes, all reflected in the BA stock fluctuating performance, which is down over 31% year-to-date. As we look to 2025, can Boeing turn things around and hope for a better year?

If you wish to read more about Boeing’s mounting problems, you can read what our analyst at Tipranks, James Fox, had to say about the company’s fortunes.

Now, Let’s explore 4 talking points to recap Boeing’s damning year:  

• Plane Crashes and Safety Concerns: The Jeju Air Boeing 737-800 crash in South Korea last Sunday was another major blow, killing 179 people. This tragic incident not only resulted in a significant loss of life but also further damaged Boeing’s already fragile reputation. Safety concerns have been a persistent issue for Boeing, and this crash has only intensified scrutiny of its manufacturing and quality control processes. Reputation is a hard thing to build and very easy to tarnish, so, on this front, it doesn’t look too good for the company, as it will affect future orders.

• Starliner Program Delays: Boeing’s Starliner program faced plenty of setbacks in 2024, some of them at the last minute. Technical issues, such as a helium leak and a faulty oxygen relief valve, caused multiple launch cancelations. The June 1 launch was particularly notable, being halted just minutes before liftoff due to a computer ground launch sequencer issue. These delays have been costly, with an additional $250 million spent, bringing total expenses to $1.85 billion. The astronauts, Butch Wilmore and Suni Williams, who were supposed to return after a week-long test flight, have been stuck at the International Space Center (ISS) since June, with their return now postponed to at least March 2025.

• Financial and Operational Struggles: Boeing’s stock fell 32% over the year despite a recent recovery following the end of a seven-week workers’ strike. The company still faces ongoing quality control issues, as evidenced by the discovery of incorrectly installed fasteners on undelivered 787 Dreamliners. Also, in the defense sector, Boeing reported a $2.4 billion loss for Q3 2024, and the competition from SpaceX in the space realm has also been fierce, with Boeing’s Starliner program underdelivering compared to SpaceX’s successful crewed missions. Additionally, Boeing’s commercial aviation performance has been disappointing, with a sharp decline in orders and deliveries, highlighting the severity of the disruption caused by the lengthy strike.

• Leadership Changes: After such a bad year for the company, it couldn’t ended without leadership changes. Dave Calhoun announced his decision to step down as CEO at the end of the year, with Steve Mollenkopf taking over as the new Board Chair. Additionally, Stan Deal, the President and CEO of Boeing Commercial Airplanes, retired, and Stephanie Pope has been appointed to lead the Commercial Airplanes division. It remains to be seen if these changes will stabilize this turbulent flight.

Is BA stock a Buy or a Sell?

On Wall Street, Boeing is considered a Moderate Buy. The average price target for BA stock is $193.16, implying an 8.88% upside potential.

See more BA analyst ratings

Is There a Light In the Horizon?

It’s hard to say. Boeing has been in the flight business since 1916, so it has seen some things over the years. However, 2024 was exceptionally bad, and the road to recovery seems distant from where things currently stand. It is clear that there have been serious problems with the management of its operations in recent years. However, with a new CEO taking charge, there may be an opportunity for improvement. Only time will tell.