Boeing misses third-quarter expectations amid MAX grounding, delays first 777X delivery until 2021
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.”
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.
Featured image courtesy of Scott Olson/Getty Images
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
- Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening, then a variable 15.74%-24.74%. Offer expires 7/28/2021.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees