Boeing reports $257 million loss on delayed Starliner launch

Boeing reports $257 million loss on delayed Starliner launch

The cost of releasing the Starliner spacecraft in May resulted in a significant financial setback for Boeing, who took a significant financial impact from the planned crew launch.

The Starliner program had a $257 million loss during the second quarter, mainly because of the effects of the previously announced launch delay, Boeing said in a statement.

It pushes Boeing's total charges for the program to about $1.4 billion, the company said.

For the first time, Boeing will be working to launch the Starliner capsule, with astronauts, to and from the International Space Station ISS.

Two astronauts, one of whom was aboard the spacecraft, were expected to test the space capsule in July. The test flight, already behind schedule, had to be halted yet again after final reviews revealed problems with the parachute lines and other problems that were present on last year's test flight with no one on board. The issues should have been caught years ago, officials said.

In the second quarter, Boeing's Defense, Space, Security Division lost $527 million in part because of the problems with the Starliner.

Boeing also said that its Air Force, Space Security second-quarter operating margin was primarily driven by losses on certain fixed-price development programs, as well as continued operational impacts of labor instability and supply chain disruption on other programs. NASA is working with Boeing to determine a new launch date.

The test flight could happen by the end of this year, but Boeing Program Manager Mark Nappi said he doesn't want to commit to any dates or time frames until the problems get fixed.

NASA arranged for Boeing and SpaceX to shuttle astronauts to and from the space station, though NASA Commercial Crew Program Manager Steve Stich pleaded for another provider for crew transportation.

SpaceX has completed 10 crew flights, three of which are private. The software and other problems caused Boeing to repeat its 2019 test flight without a crew.

Following a successful test flight with astronauts, NASA said it will begin the final process of certifying the Starliner spacecraft and systems for regular crew rotation flights to the space station. The aim is to have one SpaceX and one Boeing taxi flight to the station every year.