Boeing reports worst-ever quarter losses after grounding 737 Max jet

Aerospace giant Boeing reported its highest-ever quarterly losses Wednesday as the company remains beset by federal and public scrutiny over two deadly crashes thought to have been caused by software problems in the company’s 737 Max line of commercial jets.

The company’s quarterly losses topped $3.38 billion for the second quarter of 2019 while bringing in just $15.7 billion in revenue. The decision from the U.S. and other countries to ground the 737 Max line has sent shockwaves through the company, forcing Boeing executives to slow production of the planes.

{mosads}“This is a defining moment for Boeing, and we’re committed to coming through this challenging time better and stronger as a company,” CEO Dennis Muilenburg said during an investor call Wednesday, according to the Post.

Airlines with 737 Max jets in their fleets are now canceling hundreds of flights as the problems with the planes could reportedly keep them grounded until the fall. The company also faces lawsuits from family members of passengers on two 737 Max planes that crashed within six months of each other, reportedly both caused in part by software that made the planes nose dive unexpectedly.

Hundreds of people died on the two flights, Lion Air flight 610 and Ethiopian Airlines flight 302, spurring several countries as well as the Trump administration to ground the 737 line until a fix for the software problems is implemented.

The company has not yet received regulatory approval for the software fix, and Federal Aviation Administration acting chief Daniel Elwell indicated in May that it could be up to a year before such approval is granted.

“We remain focused on safely returning the 737 Max to service,” Muilenburg said in a statement on Thursday.

“This is a defining moment for Boeing. 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,” he added at the time.