Boeing is bracing for a significant $4 billion loss in the fourth quarter of 2024, capping a tumultuous year for the aerospace giant that saw a crippling machinists strike, layoffs, and ongoing safety concerns. The company also expects to report a $3.5 billion operating cash flow loss and revenue of $15.2 billion, falling short of analyst expectations.

"Although we face near-term challenges, we took important steps to stabilize our business during the quarter, including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet," said Boeing President and CEO Kelly Ortberg in a statement on Thursday.

The company has not posted an annual profit since 2018, and the latest figures reflect a confluence of challenges. Boeing was hit hard by an eight-week strike by the International Association of Machinists (IAM), which began in September and halted much of its commercial aircraft production. The labor stoppage led to increased labor costs and pre-tax charges of $1.1 billion on its 777X and 767 programs.

To resolve the strike, Boeing agreed to a new four-year contract with IAM members in November, which included a 38% pay increase over the term of the agreement, a $12,000 ratification bonus, enhanced 401(k) contributions, and lower healthcare premiums.

Adding to the turmoil, Boeing laid off hundreds of employees in December as part of a broader effort to reduce its headcount by 10%. The company cited ongoing restructuring as it contends with reduced production and supply chain disruptions.

The company's commercial airplane unit, which has been a critical revenue driver, suffered significantly. For the fourth quarter, Boeing estimates revenue from its commercial division at $4.8 billion, with an operating margin of negative 44%. The unit delivered just 57 planes in Q4, including 36 737 MAX jets, 15 787 Dreamliners, and six combined deliveries of 767 and 777 jets. Total annual deliveries fell to 348 aircraft, a one-third decline compared to the previous year.

Boeing's defense and space business also struggled, with anticipated pre-tax charges of $1.7 billion. These include cost overruns on the KC-46A tanker, its long-delayed 747s set to serve as the new Air Force One aircraft, and setbacks in its space programs.

The company's challenges are compounded by a lingering safety crisis that began early in 2024 when a door plug blew out midair on one of its jets. The incident renewed federal scrutiny of Boeing's safety protocols, leading to a slowdown in deliveries and denting customer confidence. Boeing has yet to fully recover from the fallout of two fatal 737 MAX crashes in 2018 and 2019, which severely tarnished its reputation.

To improve liquidity, Boeing raised $20 billion in capital during the quarter, including a $19 billion share sale in November, after its dwindling cash reserves threatened its investment credit rating. The company ended the quarter with $26.3 billion in cash and marketable securities.

Despite these efforts, Boeing's financial health remains precarious. The fourth quarter loss of $5.46 per share significantly exceeded analysts' estimates of a $1.32 per share loss.