Boeing takes $4.9 billion hit over grounding of 737 Max jets

Boeing takes $4.9 billion hit over grounding of 737 Max jets
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Boeing announced Thursday an after-tax charge of $4.9 billion over the international grounding of the 737 Max aircraft.

The charge will result in a $5.6 billion reduction in revenue and pre-tax earnings in the second quarter, the airplane manufacturer said in a statement.

Boeing will release its second quarter earnings on July 24.

The Boeing 737 Max was grounded globally after two deadly crashes in the past year.

The manufacturer has yet to receive regulatory approval on software fixes to address the issues involved in the fatal crashes in Ethiopia and Indonesia.

"We remain focused on safely returning the 737 Max to service," CEO Dennis Muilenburg said in the statement Thursday.

"This is a defining moment for Boeing. Nothing is more important to us than the safety of the flight crews and passengers who fly on our airplanes. The Max grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks," Muilenburg said.