Boeing warns of soaring 737 Max grounding costs | News | DW | 19.07.2019
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Boeing warns of soaring 737 Max grounding costs

US aircraft giant Boeing has warned that it faces spiraling costs and plummeting revenue after the global grounding of its 737 Max passenger jets. The airline is keen to return the aircraft to service in the autumn.

Boeing has said it faces a financial hit over the 737 Max crisis of some $6.6 billion (€5.7 billion), fueling profitability pressures.

The passenger jets have been grounded since March after two crashes that killed 346 people, in which software glitches appeared to have played a role.

The airplane manufacturer announced Thursday that its second-quarter earnings for the year would be reduced by $4.9 billion as it compensated airlines for disruptions and plane delivery delays. That figure omits any amounts Boeing may need to pay in the future to compensate families of the victims.

Meanwhile, profits would be hit by a further $1.7 billion because of the Max 737's reduced production rate.

"We remain focused on safely returning the 737 Max to service," said Boeing CEO Dennis Muilenburg.

"The Max grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks."

Read more: Paris Air Show: Skies darkening for Boeing

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The aircraft manufacturer is still working on flight-control software to iron out suspected problems. The company said it was hoping to receive regulatory approval to return the Max series to service later this year.

The accidents happened off the coast of Indonesia, where there were 189 fatalities last October, and in March when 157 people died in a crash near the Ethiopian capital, Addis Ababa.

rc/cmk (AFP, AP)

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