Boeing, the US plane maker, has reported a staggering $3.9 billion in free cash outflow in the first quarter of the year, as it grapples with the aftermath of the mid-air accident in January. This amount is slightly lower than the $4 billion to $4.5 billion range that the company had warned of in March, but significantly higher than the $786 million outflow reported for the same period last year.
Chief executive Dave Calhoun stated that the financial results reflect the immediate actions taken to slow down 737 production in order to drive improvements in quality. The company is focusing on making significant progress in training, tooling, inspection procedures, and controlling the flow of work through its factory in Renton, Washington.
Boeing is currently building fewer than 38 Maxes per month and reducing deliveries to improve the quality of its manufacturing processes following the mid-air incident. The company is also facing investigations by aviation regulators and the US Justice Department, with a preliminary report by the National Transportation Safety Board revealing missing bolts that were meant to fasten a panel to the fuselage.
The 737’s troubles have led to a shake-up in Boeing’s leadership, with Calhoun announcing his plans to step down as CEO at the end of the year. The chair of the board, Larry Kellner, will also be leaving after the annual meeting in May, and the head of Boeing’s commercial plane division, Stan Deal, has already departed.
Despite these challenges, Boeing is focused on stabilizing its operations, fortifying its supply chain, and delivering with predictability and quality to meet the demands of its customers.