Boeing’s revenue dropped significantly
BOEING is one of the biggest companies in the world, but the airline giant has had a very tumultuous last couple of years. According to data presented by Buyshares.co.za, Boeing’s revenue of $58.16 billion in 2020 was a 42.5 per cent decrease compared to 2018’s record-high revenue of over $101bn - a CAGR of -24.16 per cent.
Back in 2018, Boeing was flying high after crossing the $100B mark in revenue for the first time in company history. However late in 2018 and early in 2019 one of Boeing’s new aircraft models, the 737 MAX 8, experienced two crashes in the span of 5 months. Both crashes put the blame on Boeing’s new MCAS flight control system and resulted in the grounding of the entire global fleet of the 737 MAX and orders for the new model were either suspended or cancelled.
As a result, Boeing's revenue dropped by 24 per cent YoY in 2019. To further compound the crisis that Boeing was already facing, the world was hit by the Covid-19 pandemic in 2020 resulting in a huge downturn for the entire travel and tourism industry.
This caused Boeing's revenue to drop a further 24 per cent YoY in 2020. From 2018-2020 Boeing's revenue experienced a CAGR of -24.16 per cent.