Boeing expects negative cash flow to continue for a while

Boeing’s Chief Financial Officer Brian West just said that the 737 Max cash burn will continue for a while. Speaking at the Wolfe Research Global Transportation & Industrials Conference on Thursday, he said that the company has more or less written off much of 2024.

“I understand everyone would wish you would go faster, but it’s a long cycle business and we have to be disciplined,” the CFO said. “We can’t rush. We can’t push the factory too hard or the system too hard because the payoff, if we do this right, is going to be big beyond 2025, and that’s what we’re aiming at,” he added.

Ever since a piece of fuselage broke off an Alaska Airlines-operated 737 Max 9 mid-flight in January, Boeing has strained to keep up deliveries amid increased scrutiny from federal regulators. Boeing CEO Dave Calhoun has already said he’ll be stepping down at the end of the year.

Boeing has lost billions as it deals with increasing costs and less revenue. In April, it went to credit markets to borrow $10 billion to tide it over for a while. Asked whether the bleeding will be stopping anytime soon, West replied euphemistically: No.

“We expect the full year now to be a use versus generation of cash flow,” he said.