Plane maker, Boeing, records first loss in 20 years

After more than 20 years, plane maker, Boeing, has announced an annual loss for the first time.

Boeing was forced to ground its 737 Max aircraft, which had been its best seller, in March last year after two deadly crashes that killed 346 people.

The firm said that it expects the bill for the grounding to surpass $18bn (£13.8bn) and the firm's finances groans as a result, pushing it to a $636m loss for 2019.

Boeing recorded low sales in the final three months of last year when the plane maker booked $17.9bn in revenues, lower than the $21.7bn predicted by analysts.

"We recognise we have a lot of work to do," said Boeing's newly-appointed boss David Calhoun.

He replaced Dennis Muilenburg who was fired late last year following his handling of the crisis at the company.

"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," said Mr Calhoun.

WHEN WILL THE 737 MAX RETURN?

Boeing has not specified a return date for the fleet but it is working on fixes to try to get the 737 Max planes back up and running.

The cost of 737 Max crisis was thought to have reached around $9bn but Wednesday's announcement suggests the final bill could be more than double that.

In an interview with CNBC, Mr Calhoun said he expected the firm would meet deadlines set by regulators.

Meanwhile, he said that - despite the two fatal crashes - he did not plan to rebrand the 737 Max.

The company had a total backlog in orders worth $464.4bn.

BBC reported that Boeing's share price climbed on Wednesday, soaring by more than 4%.

CILTUK