Boeing anticipates further financial setbacks related to its CST-100 Starliner commercial crew program. Their preliminary fourth-quarter 2024 results, released January 23rd, project a total of $1.7 billion in charges against earnings across several programs within their Defense, Space, and Security business unit. A significant portion of this, $400 million, is allocated to the Starliner program, alongside the VC-25B and MQ-25.
This follows earlier projections of $2 billion in charges during the third quarter, with $250 million already attributed to Starliner. The precise breakdown of the new $400 million allocation remains undisclosed. The official fourth-quarter financial report is scheduled for January 28th.
Since the uncrewed return of the Starliner spacecraft in September 2024 following the Crew Flight Test mission, updates have been scarce. NASA's decision to utilize SpaceX's Crew Dragon for missions Crew-10 and Crew-11, pushing Starliner's operational debut beyond 2025, highlights ongoing concerns. "The timing and configuration of Starliner’s next flight will be determined once a better understanding of Boeing’s path to system certification is established," NASA stated previously. "NASA is keeping options on the table for how best to achieve system certification, including windows of opportunity for a potential Starliner flight in 2025."
These financial challenges coincide with Boeing's broader strategic review, aiming to streamline operations and potentially divest from less-profitable areas. Kelly Ortberg, Boeing's CEO, mentioned exploring efficiency improvements and eliminating distractions from core goals. A recent report by Space Capital even predicted potential divestitures of both Boeing and Airbus' space divisions, a move that could significantly reshape the industry.