Boeing Co (NYSE:BA, ETR:BCO) shares fell on Thursday after chief financial officer Brian West warned the planemaker would burn cash this year as it grapples with its reliability crisis.
West told the Wolfe Research Global Transportation and Industrials Conference on Thursday that Boeing’s cash flow would likely be negative over the course of 2024.
This compares to forecasts in March that Boeing would see positive cash flow in the low single-digit billion range.
Boeing has faced scrutiny and subsequent investigation after a door panel fell from one of its Alaska Air-operated 737 Max 9 jets in January.
Following concern over the US planemaker’s quality control checks, probes have also stretched to Boeing’s 787 Dreamliners.
Production has been significantly slowed since the January incident, worsening existing supply chain delays leftover from the pandemic.
West added on Thursday these would not pick up in the second quarter against the first, but said “if you're on the inside, you're seeing progress”.
However, “Everyone wishes it would go faster,” he acknowledged.
Shares fell 7.6% to US$172.21 on Thursday, taking year-to-date falls to 31.6%.