FX.co ★ Boeing anticipates free cash burn in 2024

Boeing has a tough year ahead. The top aircraft manufacturer’s revenues are unlikely to exceed its expenses this year. In the second quarter, Boeing will not be able to ramp up deliveries of new aircraft due to a crisis limiting production of its most popular models.

Burdened by delivery delays, the company would have negative free cash flow in 2024, the chief financial officer predicted. His comments caused Boeing's stock to plummet by 7.6%, closing at $172.21 per share on May 23.

Delays in delivering aircraft to China in recent weeks can be attributed to regulatory scrutiny from Chinese authorities regarding batteries powering the cockpit voice recorder. Currently, China's Civil Aviation Administration is completing its battery review.

A drop in shares is not the only problem Boeing is up against. Among other issues are manufacturing troubles and those related to delayed shipments to China.

Earlier, it was reported that Boeing's aircraft production declined significantly due to increased oversight from regulators, airlines, and lawmakers in the United States after a series of unpleasant incidents.

Furthermore, Boeing's CFO acknowledged that the company had disappointed its customers. Factory glitches and delays in deliveries to China added fuel to the fire. As a result, Boeing burned through $3.9 billion in cash in the first quarter. In the second quarter of 2024, the company could spend even more, the CFO added.