Boeing will take a $5 billion charge for its 737 Max troubles

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(CNN) -- Boeing will take a roughly $5 billion hit this quarter because of the 737 Max crisis.

The company said Thursday that it will record a $4.9 billion after-tax charge in the second quarter "in connection with an estimate of potential concessions and other considerations to customers for disruptions related to the 737 Max grounding and associated delivery delays." The charge amounts to $8.47 a share.

Shares of Boeing rose about 2% in after-hours trading. The company reports second-quarter earnings next week.

The announcement represents the company's fullest accounting to date of the cost of grounding its best-selling jet, which hasn't been able to fly since March. That month, a 737 Max crashed in Ethiopia and killed everyone on board. It was the second fatal crash involving that type of plane in months.

It's not clear when the plane will return to the air, and it's possible that it could be grounded into late 2019 or early 2020. Experts had expected the jets to be back in the air in August — but those efforts were delayed after another potential issue with the 737 Max was discovered during testing.

A Boeing official told CNN Business in June that the company does not expect to submit a new software fix to the US Federal Aviation Administration for testing until September.

On Thursday, the company said that its "best estimate" is that regulatory approval of the Max's return to service will begin early in the fourth quarter. The actual timing could differ, the company added.

 

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