Boeing takes $3B hit for Max jets, marking first quarterly loss in three years

Boeing's net quarterly loss was $2.94 billion, compared with a profit of $2.20 billion one year earlier.
Image: A Boeing 737 MAX 9 at plant in Renton, Washington
A Boeing 737 MAX 9 airplane at the firm's factory in Renton, Washington, on March 12, 2019.JASON REDMOND / AFP - Getty Images

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/ Source: Reuters
By Reuters

Boeing reported a nearly $3 billion second-quarter loss on Wednesday as the world's largest planemaker struggles with the prolonged grounding of its best-selling 737 Max jet, sending its shares lower in early trading.

The company has cut production of its flagship single-aisle aircraft and it booked a charge of nearly $5 billion in the quarter in the wake of the worldwide grounding following fatal crashes in Ethiopia and Indonesia.

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The charge, disclosed by Boeing last week, includes compensation the planemaker will have to pay airlines for the delayed deliveries.

The company said it would issue a new 2019 outlook at a future date, as the current forecast, which was suspended in April following two deadly crashes involving the Max, does not reflect the recent charges.

Boeing also said its first flight of its new 777X widebody jet is now delayed until early 2020, due to problems with the General Electric Co engine.

The 777X first test flight was expected as soon as late June, Reuters reported in May.

Boeing's net loss for the quarter ended June 30 was $2.94 billion, compared with a profit of $2.20 billion one year earlier.

Sales slipped 35 percent to $15.75 billion and also came in below the average expectation of $18.55 billion, according to data from Refinitiv.