The Boeing Company has reported its first annual loss in more than two decades Wednesday as the lengthy grounding of the 737 MAX dragged down revenues and added to costs.
The American-owned aerospace company reported a $1.0 billion loss in the fourth quarter and a $636 million loss for all of 2019, the company’s first annual loss since 1997.
The Boeing MAX has been grounded since March following two fatal crashes. Boeing estimated additional costs of $9.2 billion connected to the grounding to compensate to customers and account for the impact of lower production levels on expenses.
Boeing President and Chief Executive Officer, David Calhoun, said, “We recognize we have a lot of work to do. We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public.
“We are committed to transparency and excellence in everything we do. Safety will underwrite every decision, every action and every step we take as we move forward. Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process.”
