Boeing to Take $4.9 Billion Hit in Second Quarter of 2019

Boeing announced that it would take a $4.9 billion hit in the second quarter of 2019 after the grounding of its best-selling plane, the 737 Max aircraft.

After two fatal crashes and the deaths of 346 people, all of the planes were grounded and no plan for when they will come back into service.

According to a report on CNBC, the charge is an estimate of concessions for customers who have been left to fly planes that are not as fuel-efficient as the 737 Max during the busy summer season and through the fall with essentially no end in sight.

Most 737 Max airlines have canceled flights on routes using the airplanes into November, including United, American Airlines and Southwest Airlines.

Boeing hopes to bring the planes back into service during the fourth quarter but the company warned it could be at a later date, affecting the busy holiday season during Thanksgiving and Christmas holidays.

Boeing has also slashed production of the 737 Max and halted all deliveries of the airplanes, which are now stockpiled in storage.

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