Boeing profits down on Connexion’s failure

Boeing profits down on Connexion’s failure

Boeing (BA) reported improved revenues in the third quarter of the year as sales of their commercial airplanes went up.

However, the failure of their in-flight broadband service Connexion resulted in drop in profits for the quarter.

The company posted net income of $694 million, or 89 cents a share. This is down 31% from $1 billion, or $1.26 a share, a year earlier.

Boeing took a $280 million charge for the quarter to close down the operations of Connexion, an in-flight Internet service.

They had earlier this year decided to close down this division due to lack of sales. Boeing added that they are looking at delivering 395 planes this year.