Will the Boeing workers strike affect commercial flights?
Resolving the strikes quickly is in the interests of all parties so that work can resume on Boeing’s aircraft but passengers are unlikely to be affected.
The Boeing walkout, involving over 33,000 employees, has sparked concerns about potential disruptions to the commercial flight sector. While it is unlikely to have an immediate impact on commercial flights, it could lead to financial consequences for the aviation industry if the work stoppage persists.
Currently, the strike is not expected to disrupt air travel in the near future. Airlines typically place orders for aircraft years in advance, with deliveries spread out over time. This means that no single airline is likely to face an immediate shortage of planes due to the strike.
This strike isn’t the first for Boeing’s machinists. Over the last 50 years there have been half a dozen strikes, ranging from 19 to 69 days. The result was never disruption for passengers but always results in tens of millions of dollars of daily losses for the company.
Boeing’s potential financial losses
The halt in production of popular models like the 737 Max, 777, and 767 cargo planes could lead to a backlog of orders, bad news for a company whose reputation is already struggling after numerous incidents.
The aircraft giant stands to lose substantial cash flow, potentially up to $3.5 billion if the strike lasts until mid-November.
Boeing and Airbus have effectively formed a duopoly in the large jet airliner market since the 1990s. In 2019, Airbus displaced Boeing as the largest aerospace company by revenue, earning $78.9 billion compared to Boeing’s $76 billion. Despite a large backlog of orders at Airbus, strikes for Boeing make it difficult to close the gap.
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