As 737 Max Grounding Drags On, Boeing's Bottom Line Takes A Hit

Boeing has already said it expects the plane to return to service by the end of this year. now they don't know when the plane can fly again.


Boeing 737
Boeing 737

Four months after its top-selling 737 Max airliner was grounded worldwide, Boeing announced a 35% drop in revenues and a loss of $2.9 billion in the second quarter. Last week, the company announced a $4.9 billion charge due to costs tied to the grounding.

Boeing said that because of continued uncertainty about when the 737 Max will return to service, it's delaying any new financial forecasts.

The company's $15.8 billion in revenues for three months that ended June 30 was down sharply from the $24.3 billion it reported a year earlier. Boeing's $2.9 billion loss for the latest quarter marked a reversal from the same period in 2018, when it recorded a $2.2 billion profit.

Boeing said its deliveries of commercial planes sank 54% — to 90 in the second quarter from 194 a year earlier.

Aviation regulators around the world grounded Boeing's top-selling plane in March after a pair of crashes in Indonesia and Ethiopia killed a total of 346 people.

Investigators looking into the cause of the crashes have focused on computer software installed after a plane redesign. The software was intended to stabilize the aircraft, but something went wrong, forcing the planes into repeated nosedives.