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Boeing's profit decreases 21% on the 737 Max crisis

The aircraft manufacturer reported both lower revenues and profits compared to a year ago. Prior to the lethal flight that led to the iron being grounded and further deliveries of it ended, the company was expected to report improved earnings during the quarter.Boeing said it could no longer stand behind its previous outlook, where it is said the result would improve in 2019."Due to the uncertainty about the timing and conditions of return to service on the 737 Max fleet, new guidance will be issued at a future date, "it said.Boeing did not break out the entire cost of their results from the 737 Max crisis, but in a presentation to investors, it said it had booked a fee to fix the planet's problems. The company said the cost of getting 737 Max was at least $ 1 billion higher in the quarter due to its work on solving the problem. Boeing has continued to build 737 Max even though it has stopped delivering. The company said that it is making progress in designing a software for automatic security function of 737 Max. This feature is the focus of investigations on two fatal accidents over the past six months. In October, a Lion Air jet pilot in Indonesia apparently had trouble overcoming a safety feature that forced the planet's nose lower before it crashed. An Ethiopian Airlines jet on March 10 faced a similar issue. The second crash led to Jetsen's foundation on March 14th. "We are focused all over…

The aircraft manufacturer reported both lower revenues and profits compared to a year ago. Prior to the lethal flight that led to the iron being grounded and further deliveries of it ended, the company was expected to report improved earnings during the quarter.

Boeing said it could no longer stand behind its previous outlook, where it is said the result would improve in 2019.

“Due to the uncertainty about the timing and conditions of return to service on the 737 Max fleet, new guidance will be issued at a future date, “it said.

Boeing did not break out the entire cost of their results from the 737 Max crisis, but in a presentation to investors, it said it had booked a fee to fix the planet’s problems. The company said the cost of getting 737 Max was at least $ 1

billion higher in the quarter due to its work on solving the problem. Boeing has continued to build 737 Max even though it has stopped delivering.

The company said that it is making progress in designing a software for automatic security function of 737 Max. This feature is the focus of investigations on two fatal accidents over the past six months.

In October, a Lion Air jet pilot in Indonesia apparently had trouble overcoming a safety feature that forced the planet’s nose lower before it crashed. An Ethiopian Airlines jet on March 10 faced a similar issue. The second crash led to Jetsen’s foundation on March 14th.

“We are focused all over the company on security, returning 737 Max to service and earning and returning trust from customers, regulators and flying publicly,” said Boeing CEO Dennis Muilenburg in a statement.

 9 countries and 3 US authorities to investigate the original 737 Max certification

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Although analysts had expected better results in the quarter before the Ethiopian crash, they had lowered forecasts in recent weeks. Proportions of Boeing ( BA ) were slightly higher in trading the premarket after the report.

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