Boeing reported its first annual loss in more than 20 years.
Through a press release, Boeing reported its first annual loss in more than two decades as it continues to cope with the reputational and financial issues caused by two crashes involving the 737 Max, which killed 346 people.
Since the accidents, all 737 Max jets remain grounded worldwide, harshly hitting productivity for aviation giant. In its report, the company also stated a loss of $636 million during 2019, an operating negative cash flow of $2.44 billion, down from a positive cash flow of $15.3 billion in 2018, as well as an operating margin of negative 2.6%, down from 11.9% in 2018.
“We recognize we have a lot of work to do (…) 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. 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,” said Boeing President and Chief Executive Officer David Calhoun.
In further bad news, according to Business Insider, Boeing announced plans to reduce the production rate of its successful 787 Dreamliner wide-body jet by early 2021, to 10 jets a month from the current rate of 14. Boeing had previously said it would reduce to 12 planes per month by the end of 2020.