737 MAX: Boeing profit drops by 13.2%

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PHOTO CREDIT: Reuters

The profit of Boeing has plunged by 13.2% to $2.1 billion on the back of the global grounding of its 737 MAX plane following two crashes.

According to the company, in its the first quarter financials released on Wednesday, revenues dipped by 2% to $22.9 billion, due to a drop in its commercial plane revenues following the suspension of the 737 MAX deliveries.

Boeing also withdrew its full-year profit forecast, citing uncertainty surrounding the 737 MAX.

The aerospace giant has been under scrutiny since the March 10 crash of an Ethiopian Airlines jet, which came on the heels of an October Lion Air crash.

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Together the crashes claimed 346 lives.

Boeing said it is “making steady progress” on a fix to the jet’s anti-stall system that is thought to be a factor in both accidents.

The company has conducted more than 135 test flights of the fix and is working with global regulators and airlines, it said in a news release.

“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,” the Chief Executive of Boeing, Dennis Muilenburg, said in a press release issued on Wednesday.

The company announced earlier this month it was cutting monthly production of the 737 by about 20%.

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Boeing shares were up 1.3% at $379.07 in pre-market trading.