• Boeing is having a rough year.
• The company has faced mechanical problems, lawsuits, a leadership shake-up, and layoffs.
• Here's a breakdown of how Boeing's year has gone from bad to worse.

Boeing has been going through it this year.

From losing a door plug on an Alaska Airlines flight, causing a side panel to blow out in midair, to an exodus of corporate executives, the company has faced a litany of crises in 2024. The company's stock has fallen about 35% this year.

In a message to employees during the company's third-quarter earnings call, Boeing CEO Kely Ortberg said the company was at a "crossroads."

"My mission here is pretty straightforward," she said. "Turn this big ship in the right direction and restore Boeing to the leadership position that we all know and want."

Here's how Boeing's year went from bad to worse.

Emergency on Alaska Airlines Flight 1282

The problems began almost immediately this year when, on January 5, Alaska Airlines Flight 1282 lost a door plug midair, blowing a hole in the side of the plane. While no one died in the incident, several passengers were injured, and the pilots were forced to make an emergency landing in Portland, Oregon.

In the aftermath of the incident, the FAA temporarily grounded over 170 of Boeing's 737 Max 9 planes until they could complete safety inspections.

The Justice Department opened an investigation into Boeing shortly after, and the FBI told passengers aboard the flight that they might have been victims of a crime.

Ongoing litigation

Boeing was hit with multiple lawsuits this year.

Passengers from the Alaska Airlines flight filed a class action suit against the company just days after the incident.

"Passengers were shocked and confused, thrust into a waking nightmare unsure if these were their last seconds alive," the lawsuit said.

Boeing's shareholders filed a separate class action suit against the company in January, stating that it had prioritized profit over safety, Reuters reported.

Separately, in July, Boeing struck a plea deal related to two 737 Max crashes in 2018 and 2019 that killed 346 people. If a judge had approved the deal, it would have allowed Boeing to plead guilty to conspiracy to commit fraud, avoid a trial, pay a fine of about $244 million, and invest at least $455 million in safety and compliance measures.

Boeing agreed to pay $2.5 billion in 2021 in a deal with the federal government to avoid prosecution for the crashes, but Justice Department officials said in May that Boeing had violated portions of the deal, putting a trial back on the table. Relatives of the deceased passengers asked a Texas judge in October to throw out the agreement, which they called a "sweetheart" deal. The families have previously called for the company to pay a fine amounting to nearly $25 billion.

In December, the judge rejected the deal. A lawyer representing families who lost people in the 2019 crash told BI that they "anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing's crimes."

FAA audit of Boeing's safety procedures

The Federal Aviation Administration commissioned a report into Boeing following the fatal 2018 and 2019 crashes — and the results published in February weren't good news for the company.

The FAA report found 27 insufficient areas in Boeing's safety procedures, including no clear system for employees to report safety concerns, confusing management structures, and poor communication with employees about safety procedures.

The latest statement from the FAA about Boeing's compliance to remedy the safety issues was published in August. It said the agency continues "actively monitoring Boeing's progress in a variety of ways," including regular reviews by FAA experts of Boeing's safety procedures and issuing airworthiness certificates for every newly produced Boeing 737 Max. 

The FAA itself has faced scrutiny for its oversight of Boeing. A report from the Department of Transportation's Office of the Inspector General in October found the agency's checks were insufficient.

Exodus of Boeing executives

In March, Boeing announced a leadership shake-up.

CEO Dan Calhoun said he would step down. Stan Deal, the CEO of the company's commercial airplanes division, said he would retire. In the same announcement, board chair Larry Kellner announced his plan not to seek reelection.

Stephanie Pope, the company's COO, was promoted to replace Deal shortly after his departure. At the end of July, Kelly Ortberg was named the company's new CEO.

Ted Colbert, who headed Boeing's defense, space, and security division, became the first prominent executive to leave the company after Ortberg took over. Colbert's departure was announced in September.

Stranded astronauts

The aerospace company faced another high-profile problem in June when NASA astronauts Butch Wilmore and Suni Williams traveled to the International Space Station on Boeing's CST-100 Starliner spaceship. It marked the first time Boeing flew astronauts to space.

The astronauts left Earth on June 5 and were supposed to return after eight days, but issues with Starliner's thrusters and helium leaks caused delays. NASA and Boeing began troubleshooting the problems to bring Wilmore and Williams back home. However, in late July, the two astronauts were still stuck at the International Space Station.

NASA's Commercial Crew Program manager, Steve Stich, said in a press briefing that month that Elon Musk's SpaceX could bring home the astronauts if needed. After working with Boeing to determine whether the two astronauts could safely return to Earth on Starliner, NASA announced in August that it chose SpaceX to do the job instead.

"Spaceflight is risky," NASA Administrator Bill Nelson said during a press conference. "Even at its safest. Even at its most routine. A test flight, by nature, is neither safe nor routine. So, the decision to keep Butch and Suni aboard the International Space Station, and bring the Boeing Starliner home un-crewed, is a result of a commitment to safety."

The decision was a major blow to Boeing, which spent $4.2 billion developing Starliner. Wilmore and Williams' flight was the final step Boeing needed to clear for NASA to certify Starliner for human spaceflight. It highlighted just how far Boeing lags behind its competitor, SpaceX.

Wilmore and Williams are now expected to return to Earth in 2025 on SpaceX's Crew Dragon spaceship, which launched for the International Space Station in September. The astronauts were initially set to return home in February, but NASA announced they would be delayed until March as SpaceX readies its spaceship.

Union strike

Thousands of unionized Boeing employees walked out in September after contract negotiations broke down.

The strike began despite a promising pay package proposal, which would have raised wages by more than 25% over the contract period for more than 32,000 employees in the Pacific Northwest.

Ultimately, union workers denied the proposal and voted to initiate a strike, which is costing the company about $50 million a day.

Negotiations stalled, with both sides filing National Labor Relations Board violations accusing the other of negotiating in bad faith.

Boeing and union leaders reached a tentative deal on October 19 that included a 35% general wage increase spread over four years and a one-time ratification bonus of $7,000.

However, striking Boeing employees rejected the deal on October 24.

"After 10 years of sacrifice, we still have ground to make up. We hope to resume negotiations promptly," the International Association of Machinists and Aerospace Workers said on X.

The 53-day strike ended in early November when workers approved a new contract.

Layoffs

Boeing began furloughs of white-collar workers in mid-September after the strike began. Select employees were required to take one week off every four weeks on a rolling basis.

Ortberg, in a staff memo, also announced that executive leadership would take a "commensurate pay reduction for the duration of the strike," though details of the pay reduction remain unclear.

Layoffs began several weeks later. In mid-October, Boeing announced plans to lay off about 10% of its 170,000-member workforce.

In a memo to employees, Ortberg said Boeing was in a "difficult position" and that "restoring our company requires tough decisions."

The company also delayed production of its 777X twin-engine jet and discontinued production of its 767 cargo plane, the memo noted.

Production delays with the Boeing 777X plane

The experimental 777X is Boeing's newest widebody plane, banking 481 orders from more than a dozen global carriers even though regulators have not yet approved it to fly passengers.

But the aircraft has been riddled with production problems — like supply chain issues, design troubles, and now the ongoing strike — which have already put it five years behind schedule and set Boeing back $1.5 billion.

That hole will likely deepen with the latest entry delay to 2026, further eroding the industry's trust in Boeing's 777X program. It could also push carriers to choose Boeing's European rival Airbus and its already-in-service Airbus A350.

The aircraft is still uncertified but started certification flight testing in July. Testing was halted in August due to a problem with a key part that connects the engine to the aircraft, CNBC reported.

Production troubles with Boeing's 737 MAX aircraft

The FAA announced in January that it would not grant any production expansions of Boeing's MAX aircraft, including the 737 MAX 9, following the emergency on Alaska Airlines Flight 1282.

"The Jan. 5 Boeing 737-9 MAX incident must never happen again," the FAA said in a press release said.

FAA Administrator Mike Whitaker said Boeing would not be cleared to expand production or add additional production lines for the 737 MAX "until we are satisfied that the quality control issues uncovered during this process are resolved," according to the press release.

Boeing held a three-hour meeting with the FAA in June to address safety and quality concerns. Afterward, Whitaker spoke at a press conference, where he told a reporter that expanding production of 737 MAX planes was still up in the air.

The FAA told Business Insider, "This is about systemic change, and there's a lot of work to be done. Boeing must meet milestones, and the timing of our decisions will be driven by their ability to do so."

The agency added: "Boeing has delivered a roadmap to change its safety culture, and the FAA will make sure Boeing implements the changes they have outlined. We will not approve production increases beyond the current cap until we're satisfied they've followed through on implementing corrective actions and transforming their safety culture."

Boeing restarted production of the 737 Max in December following the strike's conclusion.

Whistleblowers report problems at Boeing

Sam Salehpour, a Boeing engineer, testified at an April Senate hearing that the company ignored his reports on safety concerns, that his boss retaliated against him, and that he received threats against his physical safety.

The Senate subcommittee investigating Boeing's safety and quality practices released a 204-page report in June. The report included accounts from several whistleblowers.

Sam Mohawk, a Boeing quality assurance inspector, said the company lost track of hundreds of bad 737 parts and instructed employees to conceal improperly stored plane parts from FAA inspectors.

Another whistleblower, Richard Cuevas, wrote in a June complaint to the FAA that holes were being incorrectly drilled on Boeing's 787 Dreamliner planes.

Money woes

In a sign of how Boeing's problems have hurt its bottom line, the company said in a regulatory filing to the SEC in October that it had entered a $10 billion credit agreement with four major banks: JPMorgan Chase, Goldman Sachs, Bank of America, and Citibank.

The company also filed a prospectus saying it might sell up to $25 billion in securities.

"These are two prudent steps to support the company's access to liquidity," Boeing said in a statement.

While workers were on strike, Bank of America analysts estimated that the work stoppage cost Boeing $50 million a day.

To save money, Ortberg, the company's CEO, instructed top executives to stop flying private jets and instead fly economy on commercial flights.

• The FAA banned drone flights across wide swaths of New Jersey.
• Thousands of reports of drone sightings have sparked concerns among residents and local officials.
• Federal officials have repeatedly said most of the sightings were crewed aircraft operating legally.

The Federal Aviation Administration has temporarily banned drones from flying over most of New Jersey.

The restrictions, which are in effect until January 17, affect more than 22 communities across the Garden State and prevent drones from flying within 1 nautical mile of the restricted areas.

"At the request of federal security partners, the FAA published 22 Temporary Flight Restrictions (TFRs) prohibiting drone flights over critical New Jersey infrastructure," the agency told Business Insider.

The news comes after thousands of reports of "mystery drones" over the US East Coast for the past month have sparked concern from locals and lawmakers.

Officials have repeatedly said most of the drone sightings are lawfully operated crewed aircraft.

Incidents of lasers being pointed at aircraft have also increased. The FAA said the number of lasers pointed at planes over New Jersey increased 269% in December compared with the same month last year.

"Misidentification often occurs when UAS are mistaken for more familiar objects such as manned aircraft, low-orbit satellites, or celestial bodies like planets or stars," the FBI said Monday in a statement, referring to unmanned aircraft systems.

There are over 1 million legally registered drones in the US. Federal regulations already prohibit drones from operating too close to an airport or flying higher than 400 feet without authorization.

• The FAA and FBI want people to stop pointing lasers at what they think are drones in the sky.
• The agencies have received a big spike in reports of pilots affected by lasers over New Jersey.
• Complaints have nearly tripled this month compared to last December, the FAA said.

US authorities want people to know they shouldn't point lasers at what they think are "mystery drones" in the sky.

The Federal Aviation Administration told multiple news outlets on Wednesday that complaints of laser strikes on crewed planes over New Jersey have jumped 269% in recent weeks compared to the same period last year.

Per Reuters, the agency received 59 reports of people aiming lasers at planes in the first half of December, up from eight in the same period of 2023.

The administration also said it had received "dozens of new laser reports from pilots" over the New York, New Jersey, and Pennsylvania areas.

The FAA told CNN that pilots across the entire US cumulatively report about 30 laser strikes on a typical night. But on Tuesday night alone, the number of reported strikes reached 123 nationwide, the administration told the outlet.

Even if the laser's target isn't a plane, it's illegal under US federal law to point a laser or shoot a firearm at a drone.

The Federal Bureau of Investigation in Newark, New Jersey also said on Monday that it was receiving more reports of pilots "being hit in the eyes" because people thought they were pointing lasers at drones.

The FBI added that local authorities have been out every night for several weeks to track down "operators acting illegally," saying the consequences of shining lasers at crewed aircraft could be deadly.

"Misidentification often occurs when UAS are mistaken for more familiar objects such as manned aircraft, low-orbit satellites, or celestial bodies like planets or stars," the FBI's Monday statement said, referring to unmanned aircraft systems.

The government warnings come as residents along the East Coast have reported seeing "mystery drones" in the sky, triggering conspiracy theories that the unknown objects are being used for nefarious or secret purposes.

The Pentagon and other federal agencies said these sightings likely aren't a threat, and that out of 5,000 drone sightings reported in recent weeks, only 100 warranted investigations.

Over a million drones are legally registered in the US, and officials say the sightings could involve commercial drones, hobbyist drones, or law enforcement drones.

• Boeing restarted 737 Max production last Friday, Reuters reported.
• It comes nearly a month after a seven-week strike restrained the already embattled planemaker.
• Returning to previous production levels could take months but is key to restoring trust.

Boeing restarted production of its 737 Max aircraft last Friday, nearly a month after a strike that lasted seven weeks, Reuters reported.

A slowdown in 737 Max production this year has annoyed customers — further delaying deliveries of aircraft in an industry hampered by supply-chain constraints.

Getting production back on track will likely go some way to restoring trust with both airlines and regulators. Other issues remain, like achieving certification of the 777X, and a judge rejecting Boeing's plea deal over two Max crashes in 2018 and 2019.

Boeing declined to comment when contacted by Business Insider.

The Federal Aviation Administration limited Boeing's output of the type to 38 a month following January's Alaska Airlines blowout. Boeing had slowed beyond that as it works to overhaul its production practices.

Then, in mid-September, Seattle-area workers represented by the International Association of Machinists and Aerospace Workers (IAM) went on strike. The strike brought 737 Max production to a halt and saw Boeing raise up to $24.3 billion to boost its liquidity.

After tense and protracted negotiations, union members voted to end the strike in early November.

In an October earnings call, CEO Kelly Ortberg said it would likely take a couple of weeks to bring everyone back, given recertification and retraining efforts.

The FAA told Reuters last month that it "will further strengthen and target our oversight as the company begins its return-to-work plan."

Boeing has a backlog of around 5,400 commercial aircraft worth roughly $428 billion. Around 4,700 of those are 737 Max jets.

FAA Administrator Mike Whitaker previously told Reuters that he would be surprised if it took less than multiple months for the company to reach the 38 maximum production limit.

Boeing's share price has dropped 37% since the start of the year. As of 5 a.m. ET, it was up about 0.5% in premarket trading following Reuters' report.

• A judge rejected Boeing's plea deal with US prosecutors over 737 Max crashes.
• The deal involved Boeing pleading guilty to fraud and paying a $243.6 million fine.
• Boeing previously agreed to a $2.5 billion settlement with the Department of Justice in 2021.

A federal judge on Thursday rejected a July plea deal between Boeing and US prosecutors, citing concerns with the role diversity, equity, and inclusion would play in selecting an independent monitor.

In his decision, Judge Reed O'Connor expressed doubts about Boeing's and the government's ability to select the monitor solely based on capability without consideration of race. The judge noted both groups' strong focus on DEI in their operating policies.

"In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency," the judge said in his decision. "The parties' DEI efforts only serve to undermine this confidence in the Government and Boeing's ethics and anti-fraud efforts."

The Texas judge O'Connor also criticized regulators' work overseeing Boeing's progress under the deferred prosecution agreement it signed in 2021, writing in the decision: "It is fair to say the Government's attempt to ensure compliance has failed."

The case stems from two Boeing 737 Max crashes that killed 346 people, the first with Indonesia's Lion Air in October 2018 and the second with Ethiopian Airlines in March 2019. Faulty software was found to be the culprit in both crashes.

Victims' families opposed the plea agreement, voicing displeasure with the process for selecting an independent anti-fraud monitor and the fact that Boeing's compliance with the monitor's recommendations is not a required condition of its probation, court documents noted.

"This is an excellent decision by Judge O'Connor and an important victory for the victims' families," Erin Applebaum, a lawyer representing 34 families of victims lost on the Ethiopian Airlines flight, told Business Insider.

"We anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing's crimes," she added. "It's time for the DOJ to end its lenient treatment of Boeing and demand real accountability."

Boeing did not immediately respond to a request for comment from Business Insider.

In July, Boeing agreed to plead guilty to fraud, pay a $243.6 million fine, and allow an independent monitor to oversee safety and quality control at its factories.

However, regulators said Boeing violated that settlement after the January Alaska Airlines door plug blowout. The deal was set to expire two days after the Alaska incident.

In May, the Justice Department said Boeing had failed to "design, implement, and enforce a compliance and ethics program."

In 2021, Boeing reached a $2.5 billion settlement with the Department of Justice and families of the victims in January 2021 to settle charges of fraud conspiracy related to the fatal crashes.

Boeing's former CEO, Dennis Muilenburg, was fired in December 2019 and was replaced by Dave Calhoun. Calhoun later stepped down in March 2024 after the Alaska blowout.

New Boeing CEO Kelly Ortberg, who started in August, has been tasked with overhauling the company culture and getting Boeing back on track with safety and its production targets.

• Thanksgiving air travel hits a record high with 232,000 flights in the US.
• Previous records were set last year with 2.9 million TSA screenings in one day.
• Minimal flight disruptions were reported, but Northeast snowstorms may impact travel.

Air travel in the US has shattered previous records for Thanksgiving — while maintaining unprecedented reliability.

From Sunday, November 24, to Thanksgiving Day, the Federal Aviation Administration documented 232,000 flights across the US - the highest number ever recorded during Thanksgiving week.

This week has already broken several records: roughly 2.7 million passengers passed through TSA each day on Tuesday and Wednesday, setting a record for a Tuesday before Thanksgiving. About 1.6 million passengers passed through on Thursday, Reuters reported.

Industry group Airlines for America estimates that more than 3 million passengers will fly in the US on Sunday. If reached, this would surpass last year's record of 2.9 million passengers screened on the Sunday after Thanksgiving.

So far, Thanksgiving air travel has also never been less chaotic — 0.3% of flights have been canceled and 1.2% have been impacted by delays — fewer than ever this time of year, according to the FAA.

That could change for those flying in and out of the Northeast. Parts of New England may be covered in snow by Friday morning, while a predicted lake-effect storm from Cleveland to Buffalo, New York, could bring five feet of snow this weekend and into next week.

• The FAA is reviewing an issue with the Boeing 737 Max's engine.
• Boeing may need to come up with a permanent solution, The Seattle Times reported.
• That may further delay the certification of the Max 7 and Max 10, which are years behind schedule.

Boeing could face further delays to new jets as regulators examine an engine issue.

It comes after two incidents on Southwest Airlines Boeing 737 Max jets last year.

In March 2023, smoke poured into the cabin after a bird hit an engine shortly after takeoff from Cuba. Smoke also filled the cockpit in a December 2023 birdstrike incident. The pilots safely made emergency landings in both cases.

Boeing consequently issued a bulletin in February informing airlines about potential impacts and appropriate operating procedures.

On Thursday, the Federal Aviation Administration announced it was convening a review board to address an issue with the CFM LEAP-1B engine that powers the Boeing 737 Max.

It added that it wasn't an "immediate flight-safety issue" but would develop a path forward and collaborate with Boeing, engine maker CFM, and European regulators.

The FAA may require 737 Max pilots to change takeoff procedures, The Seattle Times reported.

It added that this would involve turning off the airflow from the engines into the plane's interior to prevent it from filling with smoke in the case of a birdstrike.

Such a change would be temporary until Boeing devises a permanent solution, the report said.

Coming up with that could further delay the certification of its 737 Max 7 and 737 Max 10 jets — the shortest and longest versions of Boeing's newest narrow-body plane.

A delay would hamper Boeing's turnaround as it looks to recover from a difficult year. 17,000 employees are set to be laid off, while workers are currently returning to factories after a seven-week strike.

Boeing initially thought the Max 10 and Max 7 would be certified by the end of 2022, but the timeline was pushed back to 2024 and then to next year.

It came up against stricter rules in the wake of the 737 Max crashes in 2018 and 2019, when a combined 346 people died.

Boeing also withdrew a safety-exemption request related to the Max 7's engine de-icing system earlier this year, as it faced more scrutiny after January's Alaska Airlines blowout.

The delays have irritated airlines, including Boeing's biggest customer, United Airlines.

CEO Scott Kirby said United would build an alternative plan without the Max 10 due to the delays and frustrations following the blowout.

"We are working with the authorities that are investigating these incidents," Boeing said in a statement shared with Business Insider.

"We continue to follow regulatory processes to properly address potential issues and ensure the continued safety of the global fleet."

Southwest, CFM, and the FAA did not immediately respond to BI's requests for comment outside US working hours.

A day after SpaceX launched its Starship rocket for the sixth time, the company received good news from the Federal Aviation Administration regarding future launch operations from its Starbase facility in South Texas.

In a draft version of what is known as an "Environmental Assessment," the FAA indicated that it will grant SpaceX permission to increase the number of Starship launches in South Texas to 25 per year from the current limit of five. Additionally, the company will likely be allowed to continue increasing the size and power of the Super Heavy booster stage and Starship upper stage.

"FAA has concluded that the modification of SpaceX’s existing vehicle operator license for Starship/Super Heavy operations conforms to the prior environmental documentation, consistent with the data contained in the 2022 PEA, that there are no significant environmental changes, and all pertinent conditions and requirements of the prior approval have been met or will be met in the current action," the federal agency stated in its conclusion.

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