Boeing profits nosedive by more than half on 737 Max crisis
But planemaker expects beleaguered airliner to fly again by new year
Profits at troubled aircraft builder producer Boeing have more than halved in the past three months in the wake of the 737 Max crisis
The Illinois-based business has been hit by cancelled orders and investigations after two fatal air crashes in October 2018 and March 29019 were blamed on faults on flight deck equipment in the new airliner.
As reported here on Monday, Boeing has been accused of knowing about the faults “some months ago”. Boeing has maintained that it did not know the system was unsafe.
The issue was thought to have cost Boeing more than $8bn (£6.1 bn, €7.2 bn). That has been confirmed by these latest figures. Overall revenue for the quarter dropped 20 per cent.
However this was less than investors had feared and Boeing shares, which have dropped 20 per cent since the 737 Max was grounded in March, rose by 3 per cent.
Boeing has also said that it expects the 737 Max aircraft to return to the skies soon. Test pilots have conducted more than 700 flights and it is “confident in the safety of the airplane”, according to chief executive Dennis Muilenburg. Officials expect Federal Aviation Administration regulators to recertify the plane by the end of the year.
Boeing’s woes are not confined to the 737 Max. It also plans to cut production of its wide-bodied 787 Dreamliner, due to the effect of “global trade tensions”.