Boeing now sees negative free cash flow in 2024 as deliveries remain sluggish
will burn rather than generate cash in 2024 and deliveries aren't expected to increase in the second quarter, the company's finance chief said Thursday, as the U.S. planemaker grapples with a full-blown crisis that is weighing on production of its strongest-selling aircraft.
CFO Brian West told the Wolfe Research Global Transportation and Industrials Conference that he expects Boeing's full-year free cash flow to be negative, compared with a March outlook for positive cash generation in the low single-digit billions.
The company's jet production has slowed dramatically in the face of increased scrutiny from regulators, airlines and lawmakers following a January incident when a door plug blew off an Alaska Airlines jetliner while in mid-air.
Commercial jet deliveries won't step up in the second quarter compared with the first three months of the year, West said, adding that «we have frustrated and disappointed» customers due to the supply chain and production issues.
«If you're on the inside you're seeing progress,» West said, but also said «everyone wishes it would go faster.»
Shares were down 5% on Thursday. Coming into the day's trading, Boeing stock was down 30% this year.
Boeing 737 MAX jetliner production fell as low as single digits in April, Reuters reported, well below the U.S. Federal Aviation Administration cap of 38 jets a month as workers slow the assembly line outside Seattle to complete outstanding work.
The Alaska Airlines incident, which occurred on a new jetliner, prompted U.S. aviation
