Boeing's ailing defense business recorded a $2.8 billion charge, but the US planemaker stuck to its forecast of generating cash this year despite struggling to raise commercial jet production due to labour and supply shortages.
Cost overruns at Boeing's defense, space and security unit have hobbled a recovery for the company as it attempts to come out of successive crises by cashing in on rising air travel demand.
The planemaker said it took charges on its Air Force One and refueling tanker programme, among others.
"Our revenue and earnings were significantly impacted by losses on fixed-price development programs in our defense business, driven by higher estimated manufacturing and supply chain costs," Boeing's chief executive Dave Calhoun said.
Rising cost pressures over the last few months have hampered fixed-price contracts for US aerospace and defense firms, prompting an industry body to ask Congress for inflationary relief.
Boeing has appointed a senior troubleshooter Steve Parker to help turn around loss-making programmes in its defense unit, Reuters reported today.
On the commercial side, it handed over 86 MAX jets in the quarter, or just shy of 30 a month, according to company data.
It needs to deliver roughly 44 jets per month in the fourth quarter to meet its 737 MAX delivery target of "low 400s" this year.
The company said while demand for commercial planes remains strong, supply-chain constraints continue to challenge the industry.
General Electric Co said this week that the aviation industry is still facing shortages of labour, parts and raw materials, though some of the constraints are showing "early signs" of easing.
To ramp up production, Boeing said it has added more than 10,000 employees this year and is investing in training and development to improve productivity.
Adjusted loss per share in the third quarter widened to $6.18 from $0.60 a year ago. Quarterly revenue rose 4% to $15.96 billion.
Demand at the global services business that provides spare parts and services such as jet conversions was a bright spot in the quarter through September, with revenue rising 5%.
