Boeing puts Max costs at more than USD18 billion
Boeing says the true cost of the 737 Max crisis is much worse that previously feared for the company.
It now puts the financial cost at $18.6 billion, which is more than double its previous estimate.
The plane maker reported its first annual loss in over two decades.
It posted a full-year loss of $636m on $76.6 billion in revenue, dragged down by a fourth quarter loss of $1 billion.
Boeing has since halted production of the Max and still awaits clearance from regulators worldwide before it can start delivering new aircraft to airline customers.
It expects it will not get clearance for the Max to fly again until the middle of 2020.
Boeing cited $4 billion in ‘abnormal production’ costs which include payments to suppliers and keeping Max workers employed elsewhere within the company while Max production is at a standstill.
The costs so far haven’t factored in potential pay outs from multiple lawsuits filed by the families of 346 killed in two Max crashes.
The fallout from the crisis led to the firing of CEO Dennis Muilenburg, who was replaced by long time board member David Calhoun.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Euromonitor International unveils world’s top 100 city destinations for 2025