Boeing still expects 4Q regulatory approval of 737 MAX
AFP
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Boeing reported Wednesday a sharp drop in third-quarter earnings due to the 737 MAX grounding, but said it still expects regulatory approval this year to return the plane to service.

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A worker inspects a Boeing 737 MAX aircraft at Boeing's Renton Factory on October 20, 2019 in Renton, Washington. (Photo: VCG)

The aviation giant, which has been in crisis mode following two MAX crashes that killed 346 people, said it "has assumed that regulatory approval of the 737 MAX return to service begins in the fourth quarter of 2019."

The grounding has halted deliveries of the MAX, a top-selling plane and a key source of company revenue. The company said it accounted for $900 million in additional costs due to MAX delays, lifting the total so far since the grounding to $9.3 billion.

Net income was $1.2 billion, down 50.6 percent.

Revenues tumbled 20.5 percent to $20 billion.

Boeing has been under intense pressure following the fatal Ethiopian Airlines crash in March that led to a global grounding of the planes. 

"Our top priority remains the safe return to service of the 737 MAX, and we're making steady progress," said Chief Executive Dennis Muilenburg.

Boeing also said it would trim its output of the 787 Dreamliner plane from the 14 planes per month currently to 12 beginning in late 2020 due to global trade uncertainties.

Boeing shares rose 0.9 percent to $340.03 in pre-market trading.