Boeing’s revenue and profit fell in the first quarter from the global grounding of its 737 Max jets following two deadly crashes, but the company said it was making “steady progress” on a fix.
The company on Wednesday reported a one billion dollars increase in production costs connected to the 737 Max defects and warned that the crisis would force it to revise its earnings expectations for the full year.
Boeing said Wednesday in a statement that the company “is making steady progress on the path to final certification for a software update,” having completed more than 135 test and production flights with the update installed.
Boeing recorded revenue of $22.9 billion in the first quarter, down 2 percent from a year earlier and nearly matching S&P Global Market Intelligence expectations of $23 billion.
The manufacturer posted net earnings of $2.15 billion, exceeding expectations of $2 billion but down 13.2 percent from a year earlier.
The company’s 737 Max planes were grounded in March after an Ethiopian Airlines crash that killed all 157 people aboard and a Lion Air crash that killed all 189 people on-board.
Dennis Muilenburg, Boeing CEO, has apologised and acknowledged that a maneuvering system contributed to the crashes.
