Boeing (BA) is in a textbook crisis of its own making. The aerospace giant’s 737 MAX crisis has not only hit the top and bottom lines. It has also exposed worrying cracks below the surface. Without proper fixes, the company is on a dangerous course.

The company had already prepared investors for Wednesday’s $2.9 billion second-quarter loss: Last week it warned it would take a hefty charge to compensate airlines whose MAX aircraft were grounded after two fatal crashes. But Chief Executive Dennis Muilenburg issued a fresh warning that Boeing may reduce or suspend MAX production if the U.S. Federal Aviation Administration, which ceded too much to Boeing’s experts in the past, doesn’t recertify it before 2020.

The problems with its most popular airliner also took a high toll on revenue. Overall it fell by a third from the same period last year – and 15% more than analysts had expected, according to data from Refinitiv – as commercial-aircraft sales plunged by 66%.

Boeing has ratcheted up production of the 787 Dreamliner by about 10%, but that program isn’t big enough to offset the MAX. And the company warned on Wednesday that first deliveries of its new 777X wide-body jet may slip from next year to 2021 because of snags with the new General Electric-built engine. Its defense and services units improved, but nowhere near enough to offset the 737 MAX costs.

Muilenburg’s single-minded focus on operating margins deserves much of the blame. That blinded management and the board to broader issues. And it exacerbated the urgency to get the MAX to market to compete with Airbus (EADSY) while keeping costs down. That ultimately led to having to adopt the anti-stall software implicated in the crashes in Indonesia and Ethiopia that killed 346 people.

Directors appear weak, having done little of note to address the crisis aside from creating a committee to examine Boeing’s design and production processes – at Muilenburg’s request. Shareholders look supine, too, choosing in April to vote against stripping the boss of his chairman’s role.

Despite all these cascading issues, shares have only fallen some 17.5% since their early March high. That’s in part because rival Airbus’s lack of spare capacity means airlines have little choice but to stick with Boeing. But with its reputation and financials badly tarnished, Muilenburg needs a more fundamental course correction to pull Boeing out of its crisis.