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Boeing says Q2 earnings hit by $4.9 bn in costs on 737 MAX

The MAX has been grounded since mid-March following two crashes that killed 346 people/AFP

NEW YORK, United States, Jul 19 – Boeing announced Thursday that second-quarter earnings would be dented by $4.9 billion in one-time costs to compensate airlines for disruptions due to the grounding of the 737 MAX aircraft.

Profits will also be weighed down by another $1.7 billion in costs due to the 737 MAX’s lower production rate, the company said in a statement after the stock market closed.

The disclosures demonstrate the increasing financial toll that the 737 MAX crisis is taking on the company.

The MAX has been grounded since mid-March following two crashes that killed 346 people. Boeing said Thursday its “best estimate” is that the planes will return to service “early in the fourth quarter.”

“We remain focused on safely returning the 737 MAX to service,” said Boeing chief executive Dennis Muilenburg.

“The MAX grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks.”

Shares of Boeing rose 1.9 percent in after-hours trading to $368.02. Shares had fallen 2.3 percent during the trading session.

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