Boeing posts annual loss following 737 MAX crash

Boeing (LON:BOE) posted an annual loss on Wednesday as its results continue to be significantly hit by the grounding of its 737 MAX planes.

Shares in the company were trading over 3% higher on Wednesday afternoon.

Boeing said that net loss for 2019 amounted to $636 million, compared to a profit of $10.5 billion recorded in 2018.

This is the company’s first annual loss in over two decades.

Meanwhile, the company recorded a full year revenue of $76.6 billion, down 24% from the $101.1 billion figure recorded the year prior.

The company’s reputation has been plagued by two deadly crashes of its 737 MAX planes, occurring only five months apart.

This lead to the grounding of the 737 MAX model, as fears over the safety of the plane increased.

“We recognise we have a lot of work to do,” David Calhoun, the company’s President and Chief Executive Officer, said in a statement.

“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,” David Calhoun said.

“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.”

Boeing is not alone in feeling the effects of the grounding of its planes. American Airlines (NASDAQ:AAL) revealed a $350 million blow last year from the Boeing 737 MAX grounding.

Shares in Boeing Co (LON:BOE) were up on Wednesday, trading at +2.40% as of 16:12 GMT.

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