November 1, 2021 12:25 PM
Boeing’s ongoing crisis with its 737 Max planes has already cost it $1 billion this year – and the company said it can’t predict how much worse the financial impacts of the scandal could be.
Boeing announced on Wednesday that the aftermath of two fatal plane crashes, which has seen its 737 Max planes grounded around the world and a dip in production of the planes, had already cost it $1 billion, according to a report from Reuters.
The $1 billion in costs relates to an increase in the amount Boeing is paying for parts for the 737 Max, Reuters said. As it is producing lower numbers of the plane since the crashes, parts cost more as deals with suppliers are “priced according to the volume Boeing buys,” Reuters said.
Boeing said that its core profits fell 21% in the first three months of 2019 compared with the same period in 2018, and said that it was withdrawing its 2019 financial forecast because of increased uncertainty about the plane.
“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,” Boeing said.