Boeing profits tumble as plane maker works to get grounded 737 Max fleet back in the air

Boeing has revealed the extent of the financial damage from grounding its flagship plane model across the globe as at least $1bn so far.

The world’s biggest plane maker said this afternoon it had suspended its 2019 forecasts as it scrambles to get the 737 Max model back in the air after two deadly crashes involving the jet killed 346 people in total. The second, in Ethiopia last month, prompted global aviation regulators to ban the jet from their airspace over safety concerns.

Revenues fell to $11.8bn in the first three months of 2019, down on $12.9bn over the same period last year. Boeing said the drop was because of fewer deliveries of 737 Max planes. Core profit fell to $1.99bn (£1.54bn) in the quarter, down 21 per cent from $2.51bn the year before.

Earlier this month the firm revealed it delivered just 89 of the 737 Max planes in the period, down on 132 planes in the same period last year and 173 in the final quarter of 2018.

The company added changes to the production process of the model would cost another $1bn in the coming years. The fallout of the second deadly crash saw Boeing cut production of the jets to 42 aircraft per month, down from 52.

The firm is developing a fix its anti-stall software known as MCAS, which has been a common link in the separate chains of events leading to the two crashes within a span of five months.

“Due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet, new guidance will be issued at a future date,” it said in a statement.

Operating cash flow in the first quarter was around $350 million lower than a year earlier.