Boeing reported a loss of nearly $3 billion in the second quarter due to the worldwide grounding of the 737 MAX. The manufacturer also postponed the first flight of its 777X.
With a net loss of $2.942 billion in the second quarter of 2019, Boeing is facing the largest drawback in its history. It results mainly from a $5.6 billion related to the setbacks of the 737 MAX, as announced on July 18, 2019. The number dwarfs the previous estimate of $1 billion made by Boeing back in March 2019.
The aircraft has been grounded for more than four months after two crashes that caused 346 deaths. With deliveries being suspended, sales plunged by 35% to $15.751 billion.
Boeing also gave an update on the ongoing 777X program, saying that it was “progressing well through pre-flight testing,” with an unchanged target of late 2020 for the first delivery. However, the plane maker decided to postpone the first flight to early 2020 due to “engine challenges”.
While Boeing CEO Dennis A. Muilenburg announced in May 2019 that the 737 MAX controversy would not affect the 777X timeline, reports surfaced a month later revealing that the company was facing challenges with General Electric’s new GE9X engine – the largest turbine engine purpose-built for the 777X jet.