How Big Is the 737 Max Problem? Boeing Hangs a $1 Billion Price Tag on the Fix

Boeing estimates it will spend $1 billion to fix the 737 Max and has pulled its forecast of 2019 earnings because of uncertainty surrounding the jetliner, which remains grounded after two crashes that killed 346 people.The estimate was disclosed Wednesday in a presentation for investors as Boeing released first-quarter financial results, which missed Wall Street expectations. A spokesman said the estimate covered higher production costs over the next several years.Boeing did not go into great detail on the costs of fixing flight-control software that played a role in the crashes or the additional training for pilots. Still, the disclosures gave the clearest picture yet of the financial damage that the accidents are causing to the aerospace giant.Dallas-based Southwest Airlines and Fort Worth-based American Airlines, the carriers with the most Max jets, report financial results this week. Those results are expected to capture some of the ripple effects across the industry from the jets' grounding.  Continue reading...