Boeing is still bleeding money on the Starliner commercial crew program

Sometimes, it’s worth noting when something goes unsaid.

On Wednesday, Boeing’s new CEO, Kelly Ortberg, participated in his first quarterly conference call with investment analysts. Under fire from labor groups and regulators, Boeing logged a nearly $6.2 billion loss for the last three months, while the new boss pledged a turnaround for the troubled aerospace company.

What Ortberg didn’t mention in the call was the Starliner program. Starliner is a relatively small portion of Boeing’s overall business, but it’s a high-profile and unprofitable one.

Mounting losses

Boeing has reported recurring financial losses on the program and added $250 million to the tally with Wednesday’s quarterly report filed with the Securities and Exchange Commission. This brings the company’s total losses on Starliner to $1.85 billion, recorded in increments over the last few years as the program has faced technical problems and delays.

In its SEC filing, Boeing wrote: “Risk remains that we may record additional losses in future periods.”

Boeing runs the Starliner program under a fixed-price contract with NASA, meaning the government pays the contractor a set amount of money, and the company is on the hook for any cost overruns. These are favorable terms for the government because they divert financial risk to the contractor, usually resulting in lower costs if the program is successful.

Since the last Starliner test flight ended in a disappointing fashion, Boeing has released no updates on its plans for the future of the spacecraft. The company released a short written statement after Starliner landed in early September, saying managers would review data and “determine the next steps for the program.”

A week after Starliner landed, Boeing’s chief financial officer, Brian West, echoed that line. “There is important work to determine any next steps for the Starliner program, and we’ll evaluate that,” he said at a conference sponsored by Morgan Stanley.