Boeing to book $4.9bn hit over 737 grounding

Boeing has said they are to take a $4.9bn (£3.9bn) hit to cover any compensation claims to airlines as thousands of flights were cancelled over the grounding of the 737 MAX aircraft.

The aeroplane maker said the fallout from the 737 will cut nearly $5.6bn (£4.5bn) from their revenue and pre-tax earnings.

Boeing has raised their estimate of the 737 MAX production costs by $1.7bn as output will be longer than expected.

Chairman and chief executive Dennis Muilenburg said in a statement, “The Max grounding presents significant headwinds and the financial impact recognised this quarter reflects the current challenges and helps to address future financial risks.”