Boeing Reports Substantial Financial Losses Amid 737 MAX Grounding

Image: Boeing facility in Everett, Washington. (photo via rvolkan/iStock Unreleased)
Image: Boeing facility in Everett, Washington. (photo via rvolkan/iStock Unreleased)
Patrick Clarke
by Patrick Clarke
Last updated: 4:09 PM ET, Wed January 29, 2020

Boeing reported its fourth-quarter 2019 financial results on Wednesday, increasing the cost of the two fatal crashes involving the grounded 737 MAX aircraft that killed a combined 346 people to nearly $19 billion.

The American plane manufacturer reported fourth-quarter revenues of $17.9 billion, down 37 percent from $28.3 billion during the same period in 2018. Meanwhile, Boeing's full-year revenues declined 24 percent from $101.1 billion in 2018 to just $76.5 in 2019.

Boeing reported a loss of $636 million last year, marking its first annual loss in more than two decades.

Earlier this month, the company was in talks to secure a loan of $10 billion or more due to rising costs stemming from the 737 MAX grounding. However, as The Guardian reports, Boeing will set aside an additional $9.2 billion, nearly doubling its estimate of the total financial hit to $18.6 billion.

"We recognize we have a lot of work to do," said newly-appointed Boeing President and Chief Executive Officer David Calhoun, in a statement accompanying Wednesday's results. "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," he added.

The beleaguered 737 MAX has been grounded since mid-March 2019 and Boeing temporarily suspended production of the aircraft earlier this month.


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Patrick Clarke

Patrick Clarke

Senior Editor

A Maryland native and wanderer who has lived across the U.S. from North Carolina to SoCal, Patrick Clarke graduated from Towson University with a B.S. in journalism. He previously worked for Bleacher

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