Boeing swings to net loss of $2.9bn in second quarter

posted on 24th July 2019 by Justin Burns
Boeing swings to net loss of $2.9bn in second quarter

Boeing has reported a net loss of nearly $2.9 billion for the second quarter – compared to a $2.1 billion profit in the same quarter last year, fuelled by charges for the grounded 737 Max.

The US aircraft manufacturer had said on 18 July that it would take a $4.9 billion after-tax charge in its second-quarter results, due to the costs associated with the Max.

In the second quarter, on an operating level, it posted a loss of $3.7 billion, compared with a profit of $2.4 billion one year ago.

Revenue was down 35 per cent at $15.8 billion (2018: $24.2 billion) as both Max charges and reduced 737 deliveries affected figures.

The Max has been grounded globally since March after two fatal crashes – one by Lion Air in October last year and Ethiopian Airlines in March this year.

Boeing said it is working very closely with the FAA on the process they have laid out to certify the 737 Max software update and safely return the Max to service. It added disciplined development and testing is underway and it will submit the final software package to the FAA once it has satisfied all of their certification requirements.

“This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 MAX to service,” said Boeing chairman, president and chief executive officer, Dennis Muilenburg.

“During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals.”       

Boeing delivered 90 commercial aircraft in the second quarter, down from 194 aircraft in the same period last year.