Mon, July 22, 2024

Boeing’s First Annual Loss since 1997

Boeing and interesting details

Boeing is trying to cope with problems created by the 737 Max project. On Monday, Boeing reported the first annual loss in more than two decades.

According to the official information, Boeing lost $636 million in 2019. It is important that the company posted a first annual loss since 1997. For example, Boeing’s profit in 2018 reached $10.46 billion. Also, revenues exceeded more than $100 billion.

However, Boeing was unable to replicate the success in 2019. Two deadly accidents eroded the trust in a once-thriving company.

The giant corporation is still struggling to deal with a crisis that killed all 346 people aboard the flights. Boeing’s bestselling model 737 Max, remains on the ground since March 2019. The manufacturer had to suspend the production of the planes. Moreover, the date when the plane will return to service remains unknown.

Let’s have a look at the financial results. It reported a loss of $2.33 per share for the fourth quarter of 2019.

Unfortunately, in the last three months, revenue declined by 37% to $17.91 billion. It means that in comparison with the same period in 2018, revenue fell from $28.34 billion to $17.91 billion.

Boeing and 737 Max airplanesAviation giant and financial challenges

The costs associated with Boeing 737 Max increased throughout 2019. At the moment, costs surpassed $18 billion based on the data provided by the corporation. That amount includes an additional $2.6 billion pretax charge to compensate airlines and other 737 Max customers.

In the second quarter, Boeing took a $5.6 billion pretax charge to compensate its customers.

Moreover, Boeing reported the worst annual sales in decades. As a result, its main competitor Airbus became the world’s largest manufacturer.

The company’s new CEO appointed in January has to reassure the regulators as well customers that the corporation is ready to meet the expectations. He promised to work with all interested parties to discuss all issues.

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