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Boeing feels more financial pain from 737 MAX issue

19 July 2019
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Boeing warned on 18 July that its second-quarter (Q2) results announcement on 24 July will “recognise an impact to earnings” connected with its grounded B-737 MAX aircraft.

Civil aviation regulators worldwide ordered 737 MAX operations to cease in March, after two fatal airline crashes.

While emphasising the primary importance of proving safety in returning the 737 MAX to service, Boeing President and CEO Dennis Muilenburg described “significant headwinds” from the grounding. The resulting disruptions, compensation claims, delivery delays, and higher production costs mean that Boeing will record a Q2 post-tax charge of USD4.9 billion or USD8.74 per share. It equates to USD5.6 billion in revenues.

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