Boeing announces nearly $3 billion second quarter loss.


Aviation Roundtable blog had promised in our previous post to update the financial report on Boeing once published. In the post, we exrayed the mid year review between the two aircraft manufacturing giants Boeing  and Airbus. Read here. https://aviationroundtable.blogspot.com/2019/07/mid-year-review-airbus-takes-lead-over.html?m=1

Boeing today Wednesday 24th July, 2019 reported a nearly $3 billion second-quarter loss as the aircraft manufacturer struggles with the prolonged grounding of its best-selling 737 MAX jet, sending its shares lower in early trading. Consequentially, shares of Boeing were down by 1 percent at the premarket trading of the New York stock exchange (NYSE).

Boeing made a pledge of compensating the direct families of the victims of the Max 8 crashes to a tune of $100 Million. The company has also 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.The charge, disclosed by Boeing, 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 date to be announced, as the current forecast, which was suspended in April following two deadly crashes involving the MAX, does not reflect the recent realities.

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

It is indeed a challenging year for the Boeing. One of the low points was the cancellation of order for 50 737 Max 8 aircrafts by Saudi airline Flydeal.

Industry watchers are also keeping an eye on other airlines who also have firm orders for the 737 Max 8 aircraft. Notable among them is Nigerian start up airline Green Africa airways with a firm order of 100 737 Max 8 aircrafts. Another Nigerian airline Airpeace have also on order 10 Max 8 aircrafts.

It will be interesting to see how the planemarker wiggles out of this quagmire in the coming months. However, it is also worthy to note there were some elements of positivity with the recent inking of a deal with Korean air for 20 of Boeing 787 aircrafts.

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