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  1. ITV Report

Boeing says it will cost $1bn to fix 737 Max aircraft issues

There have been two deadly crashes involving Boeing's 737 Max aircraft. Credit: PA

Boeing estimates that it will spend $1 billion to fix the 737 Max, which remains grounded after two deadly crashes.

The estimate was disclosed on 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.

The company has pulled its forecast of 2019 earnings because of uncertainty surrounding the jetliner

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Boeing did not go into great detail on the costs of fixing flight-control software that played a role in the crashes, which killed 346 people, or of providing additional training for pilots.

Still, the disclosures gave the clearest picture yet of the financial damage that the accidents - one in Ethiopia and another in Indonesia - are causing to the aerospace giant.

A preliminary report from the Ethiopian government said the pilots followed Boeing’s recommended procedures when the plane started to nose dive – but could not avoid crashing.

The findings drew the strongest link yet between the March 10 crash near Addis Ababa in Ethiopia and an October crash off the coast of Indonesia, which both involved Boeing 737 Max 8 planes.