Boeing said it would take an after-tax charge of $4.9 billion in the second quarter related to estimated disruptions from the grounding of its money-spinning 737 MAX after two deadly crashes.
The charge will result in a $5.6 billion reduction in revenue and pre-tax earnings in the second quarter, the world’s largest planemaker said in a statement less than a week before it plans to release financial results on July 24.
Boeing is facing one of the worst crises in its history as its fastest-selling jetliner, the 737 MAX, remains grounded after crashes in Ethiopia and Indonesia that together killed 346 people in the span of five months. The Chicago-based planemaker is now reckoning with a blow to its reputation and the financial cost of getting the planes back in the air.
