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Boeing has warned that it will burn more cash in the first quarter than previously expected as the US plane maker grapples with the consequences of the blowout of a door panel in mid-flight from one of its aircraft.
Brian West, chief financial officer, said cash outflow would reach $4bn-$4.5bn in the first quarter, higher than forecast in January. A plan to reach a $10bn cash flow target by 2025-2026 would also take longer, said West, at a Bank of America conference in London.
Boeing has had to limit production of its 737 Max aircraft in the wake of the crisis as it seeks to improve the quality of its manufacturing and deal with increased regulatory scrutiny.
“We’re not at the moment where we can manage the near term for these financial outcomes because of the work at hand around stability,” West said. “Our expectation is that we’ll get more predictable and better positioned, but it will take time.”
This is a developing story.