Aircraft manufacturer Boeing has reported its first loss in over two decades as it continues to face the crisis surrounding its 737 Max aircraft.
Boeing recorded a $636 million loss for 2019, the first in more than 20 years, as it felt the effects of the 737 Max groundings. This was after the company posted worse than expected sales in the final three months of last year.
The aircraft maker registered $17.9 billion in revenues during the fourth quarter of 2019, which was lower than the $21.7 billion.
The Boeing 737 Max planes were grounded globally in March 2019 following two fatal crashes that killed 346 people. Since its grounding, there were no orders for the 737 Max until last month that Boeing recorded its first new orders, a total of only 30 planes.
To make things worse, the company discovered another potential flaw in the design of the aircraft following a December safety audit ordered by the US Federal Aviation Administration (FAA).
Boeing informed the FAA that it is examining whether two sections of wiring that control the tail of the plane are too close together and could cause a short circuit. If pilots did not react appropriately, this could potentially cause a crash.
Boeing's new chief executive officer (CEO) David Calhoun said: "We recognize we have a lot of work to do. We are focused on returning the 737 Max to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public."
Calhoun took over as CEO for Boeing after Dennis Muilenburg was fired late last year for his handling of the crisis at the company.
Boeing has also announced plans to halt production of its 737 Max aircraft beginning January as it awaits re-certification from airline regulators globally.
As a result of reports on the aircraft manufacturers’s decision to halt production of the plane, the company’s stock price fell by over 4% at the market close and went down by another 0.67% after hours following the official announcement.
