Boeing swings to largest quarterly loss as 737 MAX groundings create headwinds

Aerospace giant Boeing reported a record second quarter loss of $2.94bn as the effect of the 737 MAX jetliner groundings took hold.

The quarterly loss figure compared with a profit of $2.2bn. Boeing reported revenues of $15.8bn during a turbulent three months ended 30 June, a fall of 35% and short of the $20.45bn estimated by analysts as the group said its previous guidance did not reflect the impact of 737 MAX groundings, with new guidance set to be issued at a future date.

The Illinois-based manufacturer also swung to a loss per share of $5.82, markedly short of the $1.96 earning per share expected on Wall Street.

Boeing's loss was principally due to the worldwide grounding of its 737 Max aircraft after two fatal crashes that killed 346 people

Chief executive Dennis Muilenburg said: "This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 MAX to service.

"During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals."

Looking forward, while Boeing anticipates that its 737 MAX jets will be back in service early in the fourth quarter, there were no guarantees given, with any delays likely leading to additional costs for the group.

"Nothing is more important to us than the safety of the flight crews and passengers who fly on our airplanes. The MAX grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks," added Muilenburg.

As of 1330 BST, Boeing shares were flying 0.69% lower in pre-market trading at $370.50 each.