Boeing reports its 1st annual loss in more than 20 years

Boeing estimates the cost of grounding the 737 Max jet will be far higher than previously thought as it reports its first annual loss in over 20 years.

The company on Wednesday announced a net loss of $636 million in 2019, which CNN reports is its first annual loss since 1997. This comes as the 737 Max jets remain grounded following two crashes that left more than 300 people dead.

Boeing now says the costs associated with grounding the 737 Max are expected to exceed $18 billion, which The Associated Press reports is double what was previously estimated and The New York Times writes is equal to "nearly 20 percent of Boeing's annual sales before the Max was grounded."

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After halting production of the 737 Max last month, Boeing recently said it didn't expect the planes to receive approval to fly again until June or July. David Calhoun, who took over as Boeing CEO earlier this month, noted in a statement, "We recognize we have a lot of work to do."