BOEING FACES BILLION-DOLLAR LOSS AMID UNION STRIKE

Mon 16 September 2024:

Boeing is bracing for financial turbulence as over 30,000 workers in Seattle’s factories, responsible for building the popular 737 MAX jets, have gone on strike. The strike, the company’s first since 2008, follows the workers’ rejection of Boeing’s contract proposal, and analysts predict the loss of over $100 million in daily revenue.

Northcoast Research estimates that the strike could cost Boeing upwards of $3 billion, with the company expected to cut 33-35 jets from its production schedule. This financial hit comes at a difficult time, as Boeing faces increased scrutiny over safety issues and has already seen its stock plummet 40% this year.

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With a $60-billion debt burden, Boeing’s financial outlook is under further strain. Leading credit agencies have warned that the ongoing strike could lead to a downgrade in its credit rating, increasing borrowing costs for the struggling planemaker.

Newly appointed CEO Kelly Ortberg, brought in to restore confidence in Boeing, is now faced with a daunting challenge as he navigates this labor-management standoff. With cash flow already strained, Boeing must find a resolution quickly to avoid further destabilization.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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