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Boeing to pay $443 million to airlines for Max 9 grounding as losses and problems mount

An exterior view of a Boeing plant located in Renton, Washington, featuring a Boeing 737 MAX aircraft. The company disclosed its quarterly loss for the first three months of the year on Wednesday.

Boeing to pay $443 million to airlines for Max 9 grounding as losses and problems mount
Boeing to pay $443 million to airlines for Max 9 grounding as losses and problems mount

That was a lot less than the $1.63 per share analysts had predicted for the quarter. However, the gain came from outside its main business, which is commercial airplanes, where operating losses almost doubled to $1.1 billion.

Due to a steep decline in jet deliveries to its airline customers, the airplane builder had a $1.4 billion, or 8%, decline in revenue to $16.6 billion.

Only once commercial jets are delivered to clients does the corporation receive the majority of its revenue from sales.

Boeing to pay $443 million to airlines for Max 9 grounding as losses and problems mount
Boeing to pay $443 million to airlines for Max 9 grounding as losses and problems mount

The firm is still having to deal with inquiries about the quality and safety of its planes from Congress, regulators, and the general public, despite its slightly better-than-expected financial results.

In addition to attempting to salvage its severely damaged reputation, it is also working hard to appease passengers who have been disappointed by the lack of the promised aircraft.

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Boeing says that it is making the required adjustments to address the quality problems. However, in the upcoming months, those improvements will still result in further losses and unmet delivery deadlines.

In an attempt to address issues with its assembly lines, Boeing said that it will be producing fewer 737 Max aircraft than it had initially projected for the remainder of this year. It stated that problems with suppliers will also restrict production of its larger 787 Dreamliner.

In the quarter, CEO Dave Calhoun made known his intention to step down at the end of the year. “We will take the time necessary to strengthen our quality and safety management systems, and this work will position us for a stronger and more stable future,” he stated.

The $443 million compensation paid to airline customers for the three-week grounding of the 737 Max 9 aircraft, which followed an incident on January 5 in which a door plug blew off an Alaska Airlines flight and left a large hole in the side of the aircraft shortly after takeoff, the company said had a negative impact on the results.

Boeing to pay $443 million to airlines for Max 9 grounding as losses and problems mount
Boeing to pay $443 million to airlines for Max 9 grounding as losses and problems mount

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