Aviation

Boeing reveals billion-dollar cost blowout from 737 MAX crisis

Huntley Mitchell

Huntley Mitchell

Aircraft manufacturer Boeing has lifted the lid on the financial hit it has taken in its first quarterly earnings report since the grounding of its 737 MAX planes.

Boeing reported a profit of $3 billion for the first three months of 2019 – down 13.2 per cent on the previous corresponding period. The decline was in large part due to an increase of $1.4 billion in costs to produce aircraft in the 737 program.

Earlier this month, the company announced it would reduce its manufacturing output for the 737 MAX aircraft in order to focus its attention on fixing the anti-stall software that has been implicated in two fatal crashes involving Lion Air and Ethiopia Airlines.

Boeing’s quarterly revenue dipped 1.9 per cent to $32.6 billion, with commercial aircraft revenue falling 8.7 per cent to $16.8 billion.

The company also withdrew its full-year earnings guidance for 2019 “due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet”, with a new guidance to be issued “at a future date”.

Boeing chairman, president and CEO Dennis Muilenburg, said: “Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public.

“As we work through this challenging time for our customers, stakeholders and the company, our attention remains on driving excellence in quality and performance and running a healthy sustained growth business built on strong, long-term fundamentals.”

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Tourism

Federal govt announces “most significant” insolvency reforms in 30 years to help save struggling small businesses

Is your business on its last legs? Find some relief in this major announcement by the federal government.

Share

CommentComments

Hotels

Crystalbrook to take over boutique Brisbane hotel

The independent hospitality company has gone all arty-farty in expanding its east coast footprint.

Share

CommentComments

Cruise

WATCH: Dream Cruises produces delightfully cringeworthy safety video

Dream Cruises has taken a leaf out of the airline playbook by turning its safety instructions into a fun video. It’s overly cheesy, but kinda cute.

Share

CommentComments

Travel Agents

MTA agent wins coveted spot on Dutch famil

With the famil stopping in Amsterdam along the way, you’d hope this agent will remember to pack some extra-clear eye drops and plenty of snacks.

Share

CommentComments

Wholesalers

Collette releases 2021/22 travel guide with seven new tours

Tell your clients to get ready to gorge themselves on arancini and caponata because three of the seven new trips involve the jewel of the Italian south: Sicily!

Share

CommentComments

Aviation

Qantas scraps Wallabies sponsorship, makes nearly $1m selling fully-stocked bar carts

We’ve mixed the good news with the bad here in this Qantas story, so get ready to smile and frown.

Share

CommentComments

Hotels

Hotel Wrap: Crowne Plazas ready to return, W Brisbane’s Extreme WOW Suite + MORE

This week’s Hotel Wrap is so huge that we’ve nicknamed it ‘Goliath’. However, that’s not to suggest you should start slingshotting stones at it if your name is David.

Share

CommentComments

Cruise

Norwegian co-founder and cruise titan Knut Kloster dies

Kloster was not only a titan of the cruise industry, but also a humanitarian and environmentalist.

Share

CommentComments

Travel Agents

Flight Centre fills Infinity Holidays void, opening up The Travel Junction to all agents

As part of its plan to streamline its product support areas, Flight Centre will use TTJ to service Infinity’s old clients, plus some cheeky new ones.

Share

CommentComments

Aviation

Qantas workers likely to receive thousands in unpaid wages after airline loses JobKeeper court case

The Flying Kangaroo’s cost-saving targets just became a little harder to hit after this court decision.

Share

CommentComments

Destinations

These are the world’s most complained about attractions

All up, people have spent more than 17 days complaining about the landmark that made the top of this list. That’s a lot of negative Nancies.

Share

CommentComments

Wholesalers

TTC commits to new sustainability goals, plans to be carbon-neutral by 2030

Meanwhile, we’re reducing our carbon footprint by strapping a tiny solar panel to our office dog. We’re not sure what’s it’s powering, but he looks very cute.

Share

CommentComments