Boeing: posts huge quarterly operating loss

(CercleFinance.com) - Boeing has eported a second-quarter loss on Wednesday, reflecting lower plane deliveries due to the Covid-19 pandemic and the grounding of the 737 MAX.


The Chicago-based company said it recorded an operating loss of 4.3 billion dollars in the past quarter, compared with a loss of 1 billion dollars in the year-earlier period.

Revenue dropped by 25% to 11.8 billion dollars.

In a statement, Boeing said the coronavirus pandemic has badly hit air travel, having cut near-term demand, resulting in lower production and delivery rates.

The planemaker added that estimated potential concessions and other paybacks to customers relating to the grounding of the 737 MAX have increased by 551 million dollars over the quarter.

Boeing - which previously announced a redundancy plan affecting 10% of its workforce in 2020 - said the prolonged impact of Covid on production and demand means that the company will have to further assess the size of its workforce.

Copyright (c) 2020 CercleFinance.com. All rights reserved.