Boeing posts its first annual loss since 1979

Boeing Co. closed the financial books on a tragic and tumultuous 2019 by revealing that total costs for its grounded 737 Max will surpass $18 billion when the tab for restarting production later this year is included.

The planemaker is taking a $2.6 billion pretax writedown to compensate airlines for ballooning losses from a global flying ban that’s expected to stretch to midyear. Deferred production costs also grew by $2.6 billion, clipping the jet’s long-term profit potential, Boeing said in a presentation Wednesday. That’s on top of more than $9 billion in Max-related costs already disclosed.

Adding to the barrage of bad news, Boeing notched its first annual loss last year since 1997, when it shut down assembly lines amid a supplier meltdown. Looking ahead, the company expects “future abnormal costs” of about $4 billion as it slowly restarts Max production.