As Boeing goes through a series of challenges related to the planes it makes, the company’s CEO Brian West said that Manufacturers could “burn money this year”.
He also mentioned that due to the ongoing struggles, deliveries of new aircraft will also not improve in the second quarter.
Boeing suffers from aircraft deliveries
The recent statement contradicts what West said last month when he forecast Boeing would generate free cash flow “in the single-digit billions.”
The latest forecasts therefore indicate the increasing costs currently borne by the aircraft manufacturer.
According to NBC News, The aircraft manufacturing company burned nearly $4 billion in cash in the first quarter and West mentioned the figure could be similar or “possibly a little worse.”.
The company’s aircraft deliveries also took a big hit in the first quarter and fell to the lowest level since the pandemic.
Boeing also took a hit following West’s comments, with the American company’s share losing more than 7 percent.
“We have frustrated and disappointed our customers because of some of the manufacturing supply chain issues we are facing,” West said at the Wolfe Research industry conference.
“And while I understand that frustration, the most important thing we can do for our customers and the supply chain in the industry is to focus on the actions that are underway as we speak so that we can stabilize this production system, improve quality and become more predictable,” he added.
The announcement came just two months after Boeing CEO Dave Calhoun announced he would step down at the end of the year. The company has already replaced the president and CEO of its commercial aircraft unit.
Boeing’s latest financial woes stem from a shocking incident in which a door plug exploded midair on a nearly new 737 Max 9 earlier this year.
The incident was followed by other breakdowns in Boeing aircraft that eventually drew severe scrutiny from the Federal Aviation Authority (FAA).
Amid the chaos, Boeing leaders are scheduled to meet with the FAA next Thursday. During the meeting, the company will present plans to improve its quality control.
Read more: Boeing remains in US aviation regulator’s crosshairs
