Boeing first loss for 23 years

The financial cost to Boeing of the MAX crisis began to emerge last week after the company released its results for the last quarter of 2019 and announced its first annual loss for a generation.

The figures also show aircraft deliveries dropped significantly year on year. Delays to the B777X project were said to have contributed but are on the way to being solved after the aircraft made its successful maiden test flight, followed by a second last week.

For 2019, Boeing made a net loss of $636m, in stark contrast to the previous year when the company had net earnings of $10.5bn. The company said a significant drop in operating cash flow reflected the impact of the 737 MAX crisis.

CEO David Calhoun said: “We recognise we have a lot of work to do. 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.

“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.”

www.boeing.com

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