Deep Red Sea: Boeing losses mount as 737 MAX crisis continues


Since Boeing's 737 Max was grounded in March of last year, the company has delivered none of the planes, and deliveries of all the company's commercial jets totaled just 79 for the fourth quarter and 380 for the year, compared to fourth-quarter 2018 deliveries of 238 new aircraft and full-year deliveries of 806 commercial planes.

Boeing is still wrestling with the reputational and financial issues caused by two crashes involving the 737 Max, which killed 346 people.

Boeing reported a loss of $2.33 per share for the fourth quarter of previous year.

Boeing swung to its first annual loss since 1997 on mounting 737 MAX costs and indicated it would again cut production of its bigger 787 Dreamliner aircraft, now its main source of cash.

New CEO David Calhoun is criticizing the company's former leadership for not disclosing embarrassing internal communications sooner.

Boeing has reported its first annual loss in more than two decades as the 737 Max crisis continues to hit the firm.

"Very disappointing company", Trump said at the World Economic Forum in Davos, Switzerland, when asked about Boeing's new timeline to return the model to the skies.

Boeing said last week it did not expect the MAX to return to service until mid-2020 and, given Ryanair does not take deliveries during its summer peak of June-August, it will not have the first 10 MAX planes until the autumn. "We will be transparent in everything that we do". "Safety will underwrite every decision, every action and every step we take".

The 737 Max fallout has cost the company more than $19 billion so far, The Journal reported.

Boeing rose 1.6% to $321.56 at 11:29 NY, after climbing as much as 3.4%.

Boeing, which is producing the 787 Dreamliner at a rate of 14 aircraft per month, said in October it expects to lower the production in late 2020 to 12 per month, amid a drought in orders from China.

There have been layoffs at some USA suppliers with more expected as a return to Max production and deliveries remains stalled.

Boeing's results marked a dramatic reversal from a year earlier, when the company surpassed $100 billion in sales for the first time in its history.

During the earnings call, analysts will be listening for details about Calhoun's priorities.

U.S. President Donald Trump last week said Boeing was a "big disappointment", saying its troubled 737 Max airplane harmed the U.S. economy.

Airplane fuselages bound for Boeing's 737 Max production facility sit in storage behind the Spirit AeroSystems Holdings headquarters in Wichita, Kan., on December 17, 2019.