Boeing’s Starliner losses top $2 billion after spacecraft program reports worst year yet – DOC Finance – your daily dose of finance.

Boeing’s Starliner losses top $2 billion after spacecraft program reports worst year yet

In this article, Boeing has incurred losses exceeding $2 billion on its Starliner spacecraft following a challenging year where the capsule’s inaugural astronaut flight posed difficulties for NASA. The Starliner program reported charges amounting to $523 million for 2024, marking its largest annual loss thus far, as per Boeing’s filing on Monday. Boeing highlighted that Starliner operates under a fixed-price contract with NASA, indicating the potential for additional losses in future periods.

Since 2014, when Boeing secured a nearly $5 billion fixed-price contract from NASA to develop Starliner, the company has faced losses on the program nearly every year. Boeing’s program competes with SpaceX, led by Elon Musk, which has successfully completed 10 crew missions for NASA using its Dragon capsules.

During Boeing’s initial crew flight last summer, issues arose when part of the capsule’s propulsion system malfunctioned. Although Starliner safely transported astronauts Butch Wilmore and Suni Williams to the International Space Station, NASA opted to return the capsule empty and utilize SpaceX for the crew’s return earlier this year, a decision that has recently sparked controversy.

Boeing and NASA have not disclosed plans or timelines for addressing the propulsion problem with Starliner. Recently, Boeing confirmed the departure of Starliner Vice President Mark Nappi, with John Mulholland, the company’s ISS program manager, appointed as his successor. Mulholland previously oversaw the Starliner program from 2011 to 2020.

Approximately four months ago, NASA mentioned the possibility of a potential Starliner flight in 2025 while scheduling SpaceX to conduct crew missions in the spring and late summer. NASA specified that the timing and details of Starliner’s next flight hinge on Boeing’s progress towards system certification.

Since these statements in October, NASA has not provided further updates on the Starliner program.