Boeing misses third-quarter expectations amid MAX grounding, delays first 777X delivery until 2021
On Wednesday, Boeing reported revenue of $20 billion in the third quarter, representing a 21% decrease from this time last year amid fallout of the grounding of the Boeing 737 MAX jet.
The company said that the grounding resulted in a reduction of $4.9 billion after-tax in the second quarter of 2019. Costs included having to compensate airlines that fly the aircraft. In the results, Boeing said that it expects to get regulatory approval to return the 737 MAX back to service in the fourth quarter of 2019.
"Our top priority remains the safe return to service of the 737 MAX, and we're making steady progress," said Boeing President and Chief Executive Officer Dennis Muilenburg in a statement on Wednesday. "We've also taken action to further sharpen our company's focus on product and services safety, and we continue to deliver on customer commitments and capture new opportunities with our values of safety, quality and integrity always at the forefront."
Boeing said in July that it expected to take a $5.6 billion hit, which didn't include $100 million it will be paying to crash victims' families and costs from any potential lawsuits.
The report comes after a difficult few weeks for Boeing as the company deals with the groundings of the 737 MAX aircraft after two fatal crashes that killed 346 passengers and crew.
In addition to the quarter's missed expectations in Wednesday's report, Boeing also announced that it has delayed the launch of the 777X program. Initially supposed to launch in 2020, the aircraft manufacturer said that it's now targeting early 2021 for the first delivery of the 777X.
TPG's Edward Russell reported on Tuesday that Boeing replaced Kevin McAllister as CEO of its commercial aircraft business, promoting Stan Deal to the role from its global services segment. He takes over as CEO of Boeing Commercial Airplanes effective immediately, the Chicago-based airframer said on Tuesday. Last week, Boeing CEO Dennis Muilenburg was removed from his role as chairman of the company after Boeing's board of directors voted to separate the roles of CEO and chairman.
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Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month