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What percentage of Boeing's revenue and profits comes from NASA contracts and ULA?
by TimTheTinker 7y ago
What percentage of Boeing's revenue and profits comes from NASA contracts and ULA?
- btilly 7y agoGlancing at 4th quarter 2018 from https://investors.boeing.com/investors/investor-news/press-release-details/2019/Boeing-Reports-Record-2018-Results-and-Provides-2019-Guidance/default.aspx https://investors.boeing.com/investors/investor-news/press-r... commercial aircraft are about 60% of Boeing's revenue and 65% of its profit. They do not separate NASA from defense department spending, but government was about 35% of revenue and only 16% of profit. The rest is consulting. The upshot is that if SpaceX embarrasses Boeing in space, it is a black eye and a sizable chunk of Boeing's business but not critical. But if suborbital flights replace even a modest chunk of long-haul commercial flights, Boeing will be in a world of hurt. Consider, aircraft tend to operate for about 30 years. If SpaceX causes a 20% reduction in long-haul flights, it would result in a period of 6 years where nobody wants to buy new aircraft, followed by a resumption in sales at about 80% of the previous volume. There is no way that Boeing is prepared for that kind of business shift. And SpaceX does NOT have to replace 20% of passenger trips to do it. If only the most profitable few percent of passenger trips disappear, then between more expensive seats and fuller flights, the number of flights will drop by a lot more than what SpaceX does. The impact on Boeing will be outsized.