MAJOR DENT

Boeing Expects to Lose $5.6 Billion Over 737 Max Grounding

The company also said it expected an additional $1.7 billion hit related to the production of the Max.

Boeing said it expects to take a $5.6 billion hit due to the grounding of 737 Max planes nationwide following two deadly crashes in Ethiopia and Indonesia, The New York Times reports. The number represents how much the company will have to compensate airlines that were unable to fly the aircraft for months after it was grounded. The company also said it was expecting an additional $1.7 billion in costs related to the 737 Max’s slowdown in production. The costs will reportedly be spread out over some years, and do not include the potential costs of lawsuits against the company or the $100 million fund for families and communities that were affected by the crashes. “The Max grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks,” Boeing CEO Dennis Muilenburg said in a statement.