See How Much Boeing Is Estimated To Make On Every 737 MAX 8 Plane It Delivers

The crashed four-month-old plane that killed all 157 passengers and crew on board is the second brand new Boeing 737 MAX 8 airliner in recent months to be involved in a fatal crash.

As a result, airlines around the world made the decision to ground their fleets of Boeing 737 Max airliners. Some safety regulators, including Nigerian Civil Aviation Authority, have outrightly banned the plane from entering its airspace.

According to the credit rating agency, Moody, Boeing’s operating profit margin is ₦4.3b ($12m) to ₦5.4b ($15m) on a dollar of sales for on each 737 Max 8 it delivers to customers.

“The 737 is very profitable to Boeing because of the high volume, the resulting production efficiencies and the amortization of the capital investment over the program’s decades”

“Boeing does not disclose specifics, but we estimate that the average operating margin dollars recognized for each delivery of a Max 8 aircraft at between $12 million and at least $15 million or more even at this point in the model’s life”

Boeing lists the 737 Max 8 at ₦43.8 ($121.6m). However, according to industry research from Teal Group , buyers usually receive a 50% to 55% discount on the planes.

The 737 MAX is currently built alongside the previous generation 737NG (Boeing 737-600,700,800, and 900) at Boeing’s Renton, Washington factory.

By the end of 2018, Boeing ramped up production of the 737 to 52 aircraft a month. This year, it plans to produce 57 a month.

Last year, Boeing delivered 256 MAX aircraft to customers, representing nearly half of all 737 deliveries.

Boeing Commercial Airplanes, the company’s airliner division, has a backlog 5,870 planes valued at more than $400 billion (or ₦144t) .

As it currently stands, the 4,699 yet-to-be-delivered 737s represent 80% of that backlog.

Credits:businessinsider