The aircraft manufacturer Boeing announced that its profit in the first quarter of 2019 shrank by 21%, and previous forecasts for the year are no longer been relevant. This happens while the world’s largest aircraft manufacturer is trying to end the flying ban for 737 MAX planes after two deadly incidents.
The company explained that it will give new guidance about its sales and earnings after gaining greater clarity on issues related to the 737 MAX airplane.
The profit of Boeing fell to 1.99 billion USD, or 3.16 USD per share, in the first quarter of the year, according to a median forecast of analysts. By comparison, a year earlier the company’s positive financial result was 2.51 billion USD or 3.64 USD per share.
In the first three months of the year, the company’s revenues reached 22.92 billion USD, which is below the expectations of 22.98 billion USD. The costs have risen to 1 billion USD.
As a result of the lethal crash of flight ET302 in March, aircraft production has dropped to 42 planes per month compared to 52 before. And the operating cash flow in the first quarter was about 350 million USD lower than a year earlier. Boeing said they will pause for the redemption process so far.
“We are focused on the safety and return of the 737 MAX, as well as the restoration of the confidence of customers, regulators and passengers”, said the CEO of Boeing, Dennis Muilenburg.
The US aircraft manufacturer also explained that it has carried out over 135 test and production fields with the updated 737 Max software. The Federal Aviation Administration (FAA), as well as the regulators around the world, landed the plane in mid-March after the second lethal crash in the past year.