Boeing profits wiped out as 737 MAXs grounded

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Boeing has been pushed into second quarter and first half losses due to the cost of grounding the global 737 MAX fleet.

In the second quarter, losses amounted to $2.9 billion compared to a $2.2 billion profit in the same period of 2018. First half losses totalled $793 million compared to a $4.6 billion in 2018.

Falling revenue also reflect the grounding of the 737 MAX. Revenue was down 35% in the second quarter to $15.7 billion and by 19% in the first half to $38.6 billion.

Dennis Muilenburg, chairman, president and chief executive officer of Boeing says: “This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 MAX to service. During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals.”

Boeing says it is working closely with the Federal Aviation Administration to certify software updates for the 737 MAX and safely return the aircraft to service. No timing or conditions have been given for the return of the 737 MAX to service.

There was some good news from the Commercial Airplanes division; 90 aircraft including 42 787s were delivered in the second quarter. DHL ordered two 777 Freighters and FedEx ordered six 767 Freighters. Despite the 737 MAX being grounded, IAG still ordered 200 units and committed to several widebody aircraft. Commercial Airplanes still has a backlog of 5,500 aircraft valued at $390 million.