Boeing swings to loss amid 737 Max crisis
Boeing has reported a loss for 2019 as it continues to struggle with the grounding of the 737 Max.
The US planemaker posted an annual loss of $636m (£489m), a significant drop from the $10.5bn profit it booked for 2018.
It marks Boeing’s first annual loss for more than two decades.
Boeing continues to be impacted by the grounding of its former star plane, the 737 Max.
The aircraft was banned across global airspace last March, following two fatal crashes in Indonesia and Ethiopia which killed 346 people.
Earlier this month, Boeing admitted that the plane will not be flying commercially for another six months at least, meaning it misses the busy summer peak.
Boeing has been working to fix the problem with the flight control software and convince the Federal Aviation Administration (FAA) and its counterparts around the world that the aircraft is safe.
The planemaker has said it expects the grounding to cost it more than $18bn.
Meanwhile, revenues in the last three months of 2019 came in at $17.9bn, down 37 per cent. Annually, it booked $76.5bn of sales, down 24 per cent year-on-year.
“We recognize we have a lot of work to do,” said Boeing president and chief executive officer David Calhoun, who took over earlier this month when Dennis Muilenberg was fired.
“We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public. We are committed to transparency and excellence in everything we do.
“Safety will underwrite every decision, every action and every step we take as we move forward. Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process.”
