Boeing Avoids Compounding Its 737 Max Crisis
There don’t appear to be any new headaches or surprises, but it still doesn’t know how long it will take to fix the ones it already has.
The problems go beyond software now. It's a political and consumer issue, too.
Photographer: David Ryder/BloombergNo one knows when the 737 Max will return to the skies, least of all Boeing Co.
The planemaker on Wednesday gave its first financial update since the Max was grounded by regulators across the globe in March after two fatal crashes. Boeing is suspending its guidance until a future date “due to the uncertainty of the timing and conditions surrounding return to service of the 737 Max fleet.” It has also hit the pause button on share repurchases for now to conserve cash, noting that all of its $2.3 billion in buybacks took place before mid-March, when a Max operated by Ethiopian Airlines crashed. Boeing had already moved to curtail production of the Max to 42 planes a month, down from 52. On a call to discuss Boeing’s first-quarter results, Boeing Chief Financial Officer Greg Smith said the company continued to assess its production plans and would further adjust the pace as required. Chief Executive Officer Dennis Muilenburg gave few parameters for the Max’s return, saying the timing will be paced by conversations with regulators.