From CNBC: 2024-05-23 16:20:45

An American Airlines Boeing 737 MAX 8 flight was grounded by the FAA after landing at Reagan National Airport. Boeing’s CFO Brian West announced that the company will burn through cash this year due to production challenges. Boeing’s shares dropped over 7% after the announcement, impacting stock market performance.

Boeing is facing setbacks in cash flow and aircraft deliveries due to production issues. The company burned through nearly $4 billion in cash in the first quarter and is expected to continue facing challenges in the second quarter. Boeing is working to stabilize its production system and improve quality for customers.

Boeing CEO Dave Calhoun is stepping down at the end of the year amid production issues. The company is striving to regain trust after facing scrutiny following two fatal Max crashes. Boeing leaders are meeting with the FAA to present a plan for quality control improvements. The FAA has opened a new probe into Boeing’s 787 Dreamliner inspections.

Boeing has paused deliveries of 737 Max planes to China for a review of cockpit voice recorder batteries. Parts shortages have slowed Dreamliner deliveries, impacting airlines like American Airlines, United Airlines, and Southwest Airlines. Airlines are scaling back growth and hiring plans due to delays in Boeing deliveries.



Read more at CNBC: Boeing CFO comments on deliveries, cash flow after Max crisis