DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
April 12, 2024
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Boeing announced a $4.9 billion charge in the second quarter for the MAX groundings, with that charge focusing on payments to customers assuming a 4th quarter 2019 return to service.  That charge is in addition to the $2.2 billion in after tax cost increases to the 737 accounting block, and does not include compensation to customers, which could be extensive.

Reactions on Wall Street were positive, as expectations were in the $10-$20 billion range, which we believe is still possible.  Bad news at Boeing comes in pieces, just as things are always “good until they are not.”  While $5B is a major impact, it is better than a one-time charge of $10-20B, which is where things may still end up.

Boeing announced a $4.9 billion charge in the second quarter for the MAX groundings, with that charge focusing on payments to customers assuming a 4th quarter 2019 return to service.  That charge is in addition to the $2.2 billion in after tax cost increases to the 737 accounting block, and does not include compensation to customers, which could be extensive.

Reactions on Wall St. were positive, as expectations were in the $10-$20 billion range, which we believe is still possible.  Bad news at Boeing comes in pieces, just as things are always “good until they are not.”  While $5B is a major impact, it is better than a one-time charge of $10-20B, which is where things may still end up.


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