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Due to the two deadly crashes involving 737 MAX planes and subsequent grounding by the Federal Aviation Administration, Boeing announced Wednesday it would take early losses of at least $1 billion.
According to ABCNews.com, the Chicago-based Boeing revealed the information as it prepared for a call with investors. The airplane manufacturer abandoned its previous full-year financial outlook and has stopped stock buybacks.
Boeing is currently working to implement software upgrades for the 737 MAX, which was involved in Indonesia's Lion Air crash on October 29 and the Ethiopian Airlines crash on March 10.
In total, 346 people were killed in the two crashes.
In the first quarter of the 2019 fiscal year, Boeing reported earnings of $2.15 billion on revenue of $22.9 billion, with the losses partially offset by higher defense and services revenue.
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Donald Wood is TravelPulse’s Managing Editor, bringing nearly 15 years of experience to the desk. He currently lives outside Philadelphia with his wife and two children.
