Boeing 737 Max 8

  1. BAE scales back 737 Max production

    Boeing 737 Max plane

    British defence company BAE Systems has reported annual earnings growth of 7%, in line with forecasts.

    It said that earnings for the year ahead were looking healthy, boosted by a ramp up in its activities in the US.

    It also gave details on its development of Boeing's 777X aircraft. It said a successful first flight took place in January 2020, and that it was continuing software updates and testing.

    BAE did confirm that it had scaled back its production of the 737 Max plane, "in line with Boeing's reduced demand".

    The 737 Max has been grounded since March after two crashes in which 346 people were killed. As a result, Boeing recently reported its worst annual orders in at least two decades.

  2. Debris found in Boeing 737 Max jetliner fuel tanks

    Boeing 737 Max 8 plane outside the company's factory in Renton, Washington.

    An interesting story from the US overnight.

    Boeing's crisis-hit 737 Max jetliner faces a new potential safety issue as debris has been found in the fuel tanks of several of the planes.

    The head of Boeing's 737 programme has told employees that the discovery was "absolutely unacceptable".

    It comes as the 737 Max remains grounded after two fatal crashes.

    Read more here

  3. Boeing 737 Max grounding costs to reach $19bn

    Boeing figures

    The suspension of its 737 Max plane will cost Boeing $4bn in "abnormal production costs" in 2020, the company said.

    In the last quarter it was hit by "an additional pre-tax charge of $2.6bn related to estimated potential concessions and other considerations to customers related to the 737 MAX grounding", it revealed.

    It has placed the total cost of the crisis at $18.6bn, more than double its previous estimate, as it accounts for payments to airlines, reduced profits over the plane’s production cycle and expenses tied to halting manufacturing.

  4. Boeing reports loss first loss since 1997

    Boeing's 737 Max has been grounded since last March
    Image caption: Boeing's 737 Max has been grounded since last March

    Boeing reported a $1bn loss for the fourth quarter.

    For the full year, it reported a $636m loss on sales down 24% at $76.5bn. It is Boeing first annual loss since 1997.

    Boeing said deliveries of new planes dropped by 53% to 380 over the year.

    The company was forced to ground its 737 Max following two fatal crashes and it is does not expect the jet to return to the skies until June or July this year.

    Its commercial planes division reported a $6.6bn loss for 2019 on sales 44% lower at $32.2bn.

  5. Boeing: We have a lot of work to do

    Boeing 737 Max

    More on Boeing's financials.

    They are the first to be published under new chief executive David Calhoun who replaced Dennis Muilenburg who was in charge when a Boeing 737 Max jet operated by Indonesia's Lion Air crashed in October 2018 and another flown by Ethiopian Airlines crashed last March.

    Mr Calhoun said: "We recognise we have a lot of work to do.

    "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.We are committed to transparency and excellence in everything we do. Safety will underwrite every decision, every action and every step we take as we move forward."

  6. Southwest Airlines profits hit by 737 Max delays

    Southwest Airlines 737 Max planes grounded in Florida

    Southwest Airlines has reported a 21% drop in fourth quarter profits due to mounting costs relating to the continued grounding of Boeing 737 Max jets.

    Southwest Airlines is the largest operator of 737 Max aeroplanes in the world, and it is now warning that it will have to extend flight cancellations beyond June.

    Southwest said its pre-tax profits fell from $654m to $514m for the four months ending 31 December 2019, compared to the same period in the previous year and coming in below analysts' expectations.

    Seat capacity fell 1.6% in 2019, as opposed to plans to grow capacity by almost 5%. The airline now says that it is likely to fall by between 1.5-2.5% in the first quarter of this year.

    Boeing said earlier this week that the 737 Max is unlikely to be given approval to fly for at least another five months, as regulators around the world continue to scrutinise updates to the flight controls and software, as well as protocols for training new pilots to fly the plane.