Financial impact of the Boeing 737 MAX groundings information
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A parking lot at Boeing Field in Seattle filled with grounded Boeing 737 MAX aircraft
This article is part of a series about the Boeing 737 MAX
Orders and deliveries
Certification
Maneuvering Characteristics Augmentation System (MCAS)
Accidents
Lion Air Flight 610
Ethiopian Airlines Flight 302
Alaska Airlines Flight 1282
737 MAX groundings
Financial impact of groundings
List of groundings
Reactions to groundings
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The Boeing 737 MAX groundings has had a deep financial effect on the aviation industry and a significant effect on the national economy of the United States. No airline took delivery of the MAX during the groundings. Boeing slowed MAX production to 42 aircraft per month until January 2020, when they halted until the aircraft was reapproved by regulators. Boeing has suffered directly through increased costs, loss of sales and revenue, loss of reputation, victims litigation, client compensation, decreased credit rating and lowered stock value. In January 2020, the company estimated a loss of $18.4 billion for 2019, and it reported 183 canceled MAX orders for the year.
In February 2020, the global COVID-19 pandemic and the resulting travel bans created further uncertainty for Boeing. In March 2020, news that Boeing was seeking a $60 billion bailout caused a steep drop in its stock price, though Boeing eventually received $17 billion in funds from the coronavirus stimulus.[1] Its extensive supply chain providing aircraft components and flight simulators suffered similar losses, as did the aircraft services industry, including crew training, the aftermarket and the aviation insurance industry. At the time of the recertification by the FAA in November 2020, Boeing's net orders for the 737 MAX were down by more than 1,000 aircraft,[2] 448 orders canceled and 782 orders removed from the backlog because they are no longer certain enough to rely on; the total estimated direct costs of the MAX groundings were US$20billion and indirect costs over US$60billion.[3] On January 7, 2021, Boeing settled to pay over $2.5 billion after being charged with fraud.
^"How Boeing went from appealing for government aid to snubbing it". Reuters. May 2, 2020. Retrieved July 22, 2020.
^"FAA clears Boeing 737 Max to fly again 20 months after grounding over deadly crashes". November 18, 2020. Archived from the original on November 18, 2020. Retrieved November 18, 2020.
^Chris Isidore (November 17, 2020). "Boeing's 737 Max debacle could be the most expensive corporate blunder ever". CNN. Retrieved November 21, 2020.
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