Boeing Reports Massive Financial Losses
5 months ago 110 Charlie

BOEING COMPANY REPORTS MASSIVE LOSS IN SECOND QUARTER


The world's biggest aircraft maker Boeing has reported a quarterly loss of $2.9 billion (£2.3 billion), with most of this loss due to the Boeing 737 MAX grounding following two fatal crashes.

This sum of loss has been in just three months to the end of June, compared to a profit of $2.2 billion in the April - June period of the previous year, 2018.


Boeing's sales have dropped by 35% to $15.75 billion, and the company has expected to take a large cost for compensation to customers of the crashes in Indonesia and Ethiopia.

A slowdown in production of the 737, and the cost to manufacture the aircraft to increase by $2.7 billion as a resultant to the slowdown. 


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Boeing Company, listed on the New York Stock Exchange has suffered drastically, with share prices dropping by 2.73%, investors of the company are seeking for support with their shares after the release of Q2 Financials.

Boeing delivered 104 fewer aircraft in the second quarter compared to last year.

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Dennis Muilenburg, Boeing's Chief Executive said:
"This is a defining moment for Boeing and we remain focused on our enduring values for 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."


Muilenburg also said that if the 737 MAX aircraft is not cleared to the skies by the fourth quarter this year, that he would call to halt the production line, also stating: "We'll continue to assess our production plans. We might need to consider further reductions of production or shutdown of production." 


42 Boeing 737 MAX aircraft are currently being produced each month, and many of them going straight to parking at airfields, and images have arisen showing the aircraft parked in car parks.


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European Low-Cost airline Ryanair, one of the airlines that have ordered 737 MAX aircraft has expected to claim compensation from Boeing and said last week that it had been forced to cut future services because of uncertainty over the timing of deliveries of the planes.


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