Boeing profit slumps 53% as 737 MAX grounding takes heavy toll

Boeing Co cut production of its flagship Dreamliner and delayed the arrival of a successor to its 777 mini-jumbo, piling new pressures on a rejigged senior management team as the continued safety grounding of its 737 MAX sliced third quarter profits.

Core operating earnings fell to US$895 million or US$1.45 per share, from US$1.89 billion or US$3.58 per share, a year earlier. The profit slump and trio of industrial setbacks capped a tumultuous week for the world’s largest planemaker, already in the eighth month of a deepening crisis over the grounding of its best-selling single-aisle following deadly crashes.

“Our top priority remains the safe return to service of the 737 MAX, and we’re making steady progress,” Muilenburg said in a statement accompanying the results. Boeing has begun taking steps to increase safety oversight in its industrial operations and at the board level, he added. Boeing named veteran executive Stan Deal, who had been running its two-year-old Global Services Division, to the top job at commercial airplanes. Deal’s challenge to get the MAX back into service globally while simultaneously handling new aircraft deliveries and boosting 737 production is seen as one of the most formidable logistical challenges in the industry’s history.

Wow, and here I thought having your state-of-the-art airplanes drop from the sky periodically and kill hundreds of innocent people would be good for business. 🤔

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