The latest financial result by Boeing has shown that the aircraft manufacturing company has suffered its first full-year loss in more than two decades.
The Boeing Company (Boeing) is one of the biggest aircraft manufacturers in the world alongside Airbus, and according to the fourth quarter results published on Wednesday, the company lost a whopping $636 million in 2019 compared to a $10.46 billion profit it recorded in 2018.
Revenues for the final quarter of 2019 were $17.91 billion compared with $28.34 billion during the same period in 2018, while revenue for the full-year in 2019 was $76.6 billion.
Unsurprisingly, Boeing cited the ongoing 737 Max troubles as the main reason for its poor financial results. The manufacturer was forced to ground the plane in March 2019 after two crashes involving the737 Max killed 346 people. The cost of the Max crisis has been estimated to have hit more than $18 billion so far.
This has also affected Boeing’s annual aircraft sales and deliveries. New CEO of the company, David Calhoun, has stated that the company has “a lot of work to do.”
According to him, “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.”
Last week, Boeing stated that it expects the Max to return to the skies by mid-2020 after the FAA has cleared it for flight. However many industry experts, such as the UAE’s chief regulator, are skeptical of the estimate time.
Also included in the company’s quarterly report is that the production rate of the 787 will be cut from twelve planes a month in late 2020 to ten in early 2021. However, production rate will return back to twelve 787 jets per month in 2023.
Source: boeing.com
