Boeing Says Total Costs for 737 Max Will Surpass $18 Billion
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Grounded Boeing Co. 737 Max airplanes are seen in a parking lot near Boeing Field in Seattle, Washington.
Photographer: David Ryder/BloombergThis article is for subscribers only.
Boeing Co. closed the books on one of the worst financial performances in its history, but investors breathed a sigh of relief that the damage wasn’t worse -- starting with a new estimate of $18.6 billion in total costs for the grounded 737 Max.
The planemaker is taking a new $2.6 billion pretax writedown to compensate airlines for ballooning losses from a flying ban that’s expected to stretch to midyear. Deferred production costs grew by $2.6 billion, clipping the jet’s long-term profit potential, Boeing said in a presentation Wednesday. That’s on top of more than $9 billion in Max-related costs it had already disclosed.