The crisis of airplane maker Boeing is likely to continue in 2024. According to the company’s chief financial officer (CFO) Brian West, Boeing expects to continue burning through cash this year while the delivery will remain slow.
Boeing faced an array of production issues after their planes were involved in a number of concerning incidents. The most recent happened in January, when a door plug blew out on a Boeing 737 Max 9 flying to Alaska.
These incidents brought heightened scrutiny to the company by U.S. aviation regulators. The company is now required to address a number of safety issues while also making broad changes to its manufacturing process. This resulted in the lowest delivery rate in years and mounting costs.
Boeing burned through $4 billion in cash in the first quarter of 2024 and expects to do the same in the second quarter as well.
“We have frustrated and disappointed our customers because of some of the production supply chain issues that we’re up against,” West said during appearance on Wolfe Research Global Transportation and Industrials 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 could stabilize this production system, improve quality, and get more predictable.”