Boeing posts first annual loss in 22 years because of the 737 Max crisis
Posted January 29, 2020 7:46 a.m. EST
Updated January 29, 2020 7:51 a.m. EST
CNN — Boeing reported a $4 billion loss in 2019 as the cost of the 737 Max crisis continued to climb. It was Boeing's first annual loss since 1997.
Most of that loss -- $2.5 billion -- came in the last three months of 2019. That compares with a $3.9 billion profit a year earlier.
Revenue for the year plunged 24% because of the halt in deliveries of the 737 Max in March.
Boeing said it will pay an additional $2.6 billion to airline customers to compensate them for the grounding, which followed two fatal crashes that killed 346 people.
The cost of producing the jet increased by $2.6 billion during 2019. Boeing also expects a cost increase of $4 billion in 2020 because of a temporary shutdown of the 737 Max line.