This is the Huge Hit Boeing Will Take in Q2 on 737 Max Jets Being Grounded

It’s no surprise that Boeing is taking a major hit for the second quarter as a result of its 737 Max jets being grounded since mid March.

The Chicago-based company will take a staggering $4.9 billion dollar charge in the second quarter which comes to $8.74 a share. The charge is expected to wipe out profits, which were estimated to have been $1.80 a share by analysts.

The 737 Max jetliners are the best-selling plane for the company and the worldwide grounding of them is taking a major toll for Boeing.

The charge would reduce revenue and pre-tax earnings by $5.6 billion in the quarter, said the company.

Regulators have yet to say when Boeing’s 737 Max jets will be able to fly again but Boeing has said that they may return to service early in the fourth quarter of this year but warned that could also be later.

Two deadly crashes are responsible for the jetss being grounded, a Lion Air flight in Indonesia last October and an Ethiopian Airlines flight in March. Boeing has said that it would give $50 million in financial assistance for crash victims’ families.

One man, Paul Njoroge, lost his wife, three small children and his mother-in-law on Nairobi-bound Ethiopian Airlines Flight 302.

“I miss their laughter, their playfulness, their touch,” Njoroge said. “I am empty. I feel that I should have been on that plane with them. My life has no meaning. It is difficult for me to think of anything else but the horror they must have felt.”

Boeing said it is “deeply sorry for the impact to the families and loved ones of those on board.

“These incidents and the lives lost will continue to weigh heavily on our hearts and on our minds for years to come. We are committed to working with the communities, customers and the aviation industry to help with the healing process,” it said.

The company is expected to report second quarter results next week.

Disclaimer: We have no position in Boeing Co. (NYSE: BA) and have not been compensated for this article.