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BREAKING NEWS

Boeing sinks to $3 billion loss on MAX groundings

Boeing sinks to $3 billion loss on MAX groundings
FILE PHOTO: The Boeing logo is pictured at the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker/File Photo -
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Paulo Whitaker(Reuters)
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(Reuters) – Boeing Co <BA.N> reported a nearly $3 billion (£2.4 billion) second-quarter loss on Wednesday as the world’s largest planemaker struggles with the prolonged grounding of its best-selling 737 MAX jet, sending its shares lower in early trading.

The company has 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 last week, 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 future date, as the current forecast, which was suspended in April following two deadly crashes involving the MAX, does not reflect the recent charges.

Boeing also said its first flight of its new 777X widebody jet is now delayed until early 2020, due to problems with the General Electric Co <GE.N> engine.

The 777X first test flight was expected as soon as late June, Reuters reported https://in.reuters.com/article/boeing-777x/boeing-aims-for-first-flight-of-777x-in-late-june-sources-idINKCN1SZ2TH in May.

Boeing’s net loss for the quarter ended June 30 was $2.94 billion, compared with a profit of $2.20 billion, a year earlier.

Sales slipped 35% to $15.75 billion and also came in below the average expectation of $18.55 billion, according to IBES data from Refinitiv.

Boeing shares were down 1% in premarket trading.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)

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