(Reuters) – Boeing Co on Wednesday swung to its first annual loss since 1997 as 737 MAX costs doubled to nearly $19 billion, and the plane manufacturer indicated it would again cut production of its bigger 787 Dreamliner aircraft, currently its main source of cash.

Boeing, struggling to restore public confidence and recover from the biggest crisis in company history, has halted production of the once fast-selling 737 MAX which was grounded in March following two deadly crashes. The company is immersed in compensation talks with airline customers and dealing with lawsuits from victims’ families and a criminal probe.

Boeing shares were 1.2% higher, as some analysts had expected an even larger charge for 737 MAX costs. The stock has lost about a quarter of its value since early March 2019.

Deliveries of hundreds of jets remain frozen while Boeing updates the flight control system and software to address issues involved in both crashes.

Boeing’s core operating loss was $2.53 billion, or $2.33 per share, compared with a profit of $3.87 billion, or $5.48 per share, a year earlier.

Analysts on average expected Boeing to post earnings per share of $1.47 in the quarter, though several had predicted a loss amid a wide range of forecasts due to uncertainties over the cost of the 737 MAX crisis.

Reuters https://www.reuters.com/article/us-boeing-results/boeing-posts-first-annual-loss-in-two-decades-as-737-max-costs-near-19-billion-idUSKBN1ZS1L9

Photo Marcel van Leeuwen