Boeing 737 Max. Photo: Shutterstock

The Boeing Co. reported Wednesday that it recorded about $2 billion in losses during the third quarter related to the two crashes of its 737 MAX planes, but the number doesn't include massive legal costs, settlements and penalties that loom in its future.

With $20 billion in revenue, the company still showed a profit, though it was 20% lower than the same quarter in 2018.

Its report did note the risk related to "potential adverse developments in new or pending litigation and/or government investigations." Overseeing those legal matters is J. Michael Luttig, former general counsel and now chief counsel and adviser to the Boeing's chief executive.

The U.S. Federal Aviation Administration, as well as about a dozen regulators around the world, have suspended 737 MAX flights until Boeing satisfies them that changes have been implemented to make the planes safer.

During a conference call with investors, CEO Dennis Muilenburg said the company is cooperating with all the international investigations. He specifically named Canada, Brazil, Europe and China among the dozen of regulators involved.

Muilenburg said the FAA is "interfacing" with the international regulators and sharing all Boeing documents with them. Approvals could vary by jurisdiction as countries adhere to their own timelines, he said.

He expects flights to resume by early in 2020, he added.

Muilenburg also said he is preparing to testify Oct. 30 before a congressional hearing, where he anticipates "tough, challenging questions."

J. Michael Luttig, of The Boeing Co.

Oversight of the investigations and other crash legal issues has fallen to Luttig, the former general counsel who now serves as executive vice president and counsel to Muilenburg. He was not available for comment Wednesday.

On May 1, Brett Gerry, the former president of Boeing Japan, was named general counsel to handle the regular company legal business so that Luttig could focus on the crash-related legal matters. The switch was the first of three recent management changes.

On Oct. 11, the Boeing board of directors split Muilenburg's CEO and chairman roles, leaving him as the CEO. Corporate governance experts along with government investigators often urge companies to split the roles, offering more checks and balances.

In the latest management shakeup, on Oct. 21 the company said it removed Kevin McAllister, head of its commercial airplanes division. Asked during the earnings call about the company changes and McAllister's firing, Muilenburg said simply, "Our focus must be on ensuring we are fielding the strongest team we can."

Though the company took no provision for legal costs related to the crashes, in the second quarter it recorded an earnings charge of $5.6 billion "in connection with estimated potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding and associated delivery delays."

In that quarterly filing it noted, "Multiple legal actions have been filed against us as a result of the October 29, 2018 accident of Lion Air Flight 610 and the March 10, 2019 accident of Ethiopian Airlines Flight 302. … We cannot reasonably estimate a range of loss, if any, that may result given the ongoing status of these lawsuits, investigations, and inquiries."

The company declined to discuss potential legal costs Wednesday while it focuses on getting the 737 MAX back in the air safely.

As Muilenburg said Wednesday, "Our top priority remains the safe return to service of the 737 MAX, and we're making steady progress."