Boeing is reporting a $ 2.4 billion loss for the second quarter due to the grounding of its 737 Max jet and the coronavirus pandemic, which is expected to depress airline travel even longer than previously expected.
The company said Wednesday that revenue fell 25%, which is worse than analysts had expected.”The reality is the pandemic’s impact on the aviation sector continues to be severe,” CEO David Calhoun said.
“This pressure on our commercial customers means they are delaying jet purchases, slowing deliveries, deferring elective maintenance, retiring older aircraft and reducing spend — all of which affects our business and, ultimately, our bottom line.”
Calhoun said it will take “around three years” to return to 2019 passenger levels. On Tuesday, an airline industry trade group said air travel won’t recover to pre-pandemic levels until at least 2024, a year longer than its previous forecast.
The International Air Transport Association cited the inability of the United States and developing countries to contain the coronavirus.