Aircraft manufacturer Boeing (NYSE: BA) reported a $2.4 billion net loss in revenue for the second quarter of 2020, which it attributes to the significant hit to the aviation industry by the ongoing coronavirus pandemic.
Commercial aircraft deliveries across the board fell by more than half during the first half of 2020, compared to the same period last year. Boeing’s popular 737 MAX was grounded more than a year ago after two deadly crashes within five months.
In addition, airlines are struggling to stay afloat during the COVID-19 travel restrictions and are delaying or slowing new airplane orders to preserve cash. Air travel is not expected to recover for another two to three years.
Chicago-based Boeing plans to counter this business downturn by further adjusting its commercial aircraft production and reducing headcount during the rest of the year.
The company also manufactures aircraft for the military and space industries, which offered some cushion against an even worse second quarter loss.
“The diversity of our balanced portfolio and our government services, defense and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities,” Boeing President and CEO David Calhoun said in a statement.