Boeing costs for 737 Max jump, profit falls short
DALLAS — Boeing signaled Wednesday that it is close to completing its fix to the 737 Max and still expects it to be approved to fly before the end of the year.
The troubled plane has been a drag on the company each day it remains grounded after two fatal crashes that killed 346 people. Boeing reported that thirdquarter earnings fell 51% to $1.17 billion. It added another $900 million in costs for the Max, and deliveries of new planes tumbled from a year ago.
Executives say the company has been giving regulators critical final documents that describe software changes and a program for training pilots to fly the plane, which has been grounded since March.
U.S. airlines still don’t expect to use their Max jets until early next year, however, and Boeing acknowledges that other countries might take longer than the U.S. to let the plane fly again.
Chicago-based Boeing eased concern that it might even temporarily shut down the Max assembly line near Seattle if the plane remains grounded. The company said it will raise 737 production from 42 a month to 57 a month by late next year.
On a call with analysts and reporters, CEO Dennis Muilenburg said Boeing began submitting key elements of its Max fix to the Federal Aviation Administration in September.
“We are diving deep into the documents, we are answering all the questions, and the FAA is taking the time to make sure we get it right,” he said.
Muilenburg is scheduled to appear next week before Senate and House committees that are investigating Boeing and the FAA’s approval of the Max.
“I anticipate that there will be tough questions, challenging questions, a lot of scrutiny, and frankly we support the scrutiny on the work we’re doing,” Muilenburg said. He added that he hopes to express his sympathies to families of the crash victims, some of whom plan to attend the hearings.