Boeing workers are pictured exiting a gate below an image of a Boeing 737-800 aircraft as Boeing’s 737 factory teams hold the first day of a “Quality Stand Down” for the 737 program in Renton, Washington on January 25, 2024.Â
Jason Redmond | AFP | Getty Images
Boeing‘s cash burn is easing this quarter and its factories are improving to deliver more planes this year, the aerospace giant’s finance chief said Wednesday, as the company works to turn a corner on several manufacturing and safety crises.
Boeing shares ended the day nearly 7% higher after CFO Brian West’s upbeat comments, leading the Dow Jones Industrial Average and S&P 500 higher.
“We think we’re off to a good start for the year,” West said at a Bank of America investor conference. He said cash burn improvement could be in the “hundreds of millions” of dollars.
Boeing went through about $14 billion last year, including more than $4 billion in the last three months of 2024, when it struggled through a nearly two-month labor strike at its largest factories and faced other production problems. Boeing last posted an annual profit in 2018.
West said the massive fire at a Pennsylvania aviation fastener factory in February won’t have a near-term production impact or affect Boeing’s goal to get monthly output to 38 737 Max aircraft a month and seven 787 Dreamliners because of its elevated inventory.
The FAA last year barred Boeing from ramping production up beyond 38 Max planes a month following the January 2024 midair blow out of a door plug on a passenger jet. New Transportation Secretary Sean Duffy said the cap remains in place, following a visit to Boeing’s 737 Max factory in Renton, Washington, last week.
Boeing is still working up to its capped production rate.
West also brushed off immediate concerns about President Donald Trump‘s proposed tariffs, but said any impact depends on how long the uncertainty lasts.
Read the original article here