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Boeing employees are seen departing from a facility beneath an image of a Boeing 737-800 as the company’s teams in Renton, Washington, initiate their first “Quality Stand Down” day for the 737 program on January 25, 2024.
According to Boeing’s Chief Financial Officer, the aerospace manufacturer is experiencing a reduction in cash burn this quarter, alongside improvements in its production lines that should lead to increased aircraft deliveries in the near future. The remarks were made during a presentation at a Bank of America investor event on Wednesday, reflecting the company’s ongoing efforts to navigate various manufacturing and safety challenges.
Following the CFO’s positive outlook, Boeing’s stock surged more than 5% during afternoon trading, contributing to gains in both the Dow Jones Industrial Average and the S&P 500.
West expressed optimism for the year, stating, “We believe we’ve made a solid start.” He projected an improvement in cash burn that could reach “hundreds of millions” of dollars, a notable shift compared to the previous year when Boeing reported a cash burn of approximately $14 billion. This included over $4 billion in the last quarter of 2024 alone, as the company dealt with a protracted labor strike affecting its largest factories and other manufacturing issues. It’s important to note that Boeing has not recorded an annual profit since 2018.
Further coverage of aviation developments
In addressing challenges, West noted that a significant fire at a fastener factory in Pennsylvania in February is not expected to disrupt short-term production or impede Boeing’s strategy to increase the monthly output of 737 Max aircraft to 38 units and 787 Dreamliner output to seven units. This position is supported by Boeing’s current high inventory levels.
Although the Federal Aviation Administration (FAA) imposed restrictions on production increases following an incident in January 2024—where a door plug malfunction occurred mid-air—West indicated that the company is still working toward achieving its current production limits. New Transportation Secretary Sean Duffy confirmed that the existing cap on production remains unchanged after his visit to the Renton facility last week.
West also acknowledged the potential impact of President Donald Trump’s proposed tariffs but indicated that the effects would largely depend on the duration of the uncertainty surrounding trade policies.
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