Boeing reports first net loss in more than 20 years amid 737 Max grounding

Boeing on Wednesday reported its first net loss in more than 20 years as its popular 737 Max jet remains grounded after two deadly crashes.

Boeing on Wednesday reported $17.9 billion in fourth-quarter revenue for 2019. It marks a 37 percent decrease from 2018, when the airplane manufacturer closed out the fourth quarter with $28.3 billion in revenue.

Boeing also reported a 24 percent decrease in revenue overall for 2019 compared to 2018, reporting $76.5 billion compared to $101.1 billion.

Overall, Boeing reported a net loss of $636 million in 2019. This is Boeing’s first annual loss since 1997, according to The Washington Post.

Boeing attributed the downturn to the continued grounding of the troubled 737 Max. 

“We recognize we have a lot of work to do,” Boeing President and CEO David Calhoun said in a statement. “We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public.”

Calhoun added that Boeing is committed to “transparency and excellence” as the process to return the plane to the skies continues. 

“Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process,” he said. 

The 737 Max has been grounded since March 2019, after two deadly crashes in October 2018 and March 2019 left 346 people dead.  

Boeing announced earlier this month it plans to resume flying its 737 Max jet in the middle of this year. The planes have yet to be cleared for use by regulators.