Boeing is facing a double blow: burning more cash than anticipated and needing to slow down production of its workhorse 737 aircraft. This comes as the company prioritizes quality control measures in the wake of recent manufacturing issues.
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The planemaker's Chief Financial Officer, Brian West, announced the news during a conference. He acknowledged exceeding their first-quarter cash burn estimates by $4 billion to $4.5 billion. This financial strain stems from a combination of reduced deliveries and lower production volume on the 737 line.
West emphasized Boeing's commitment to quality, stating they'll intentionally slow production to ensure proper assembly. This shift follows a period where efficiency was prioritized over meticulousness, as West himself admitted. Additionally, the Federal Aviation Administration (FAA) has imposed a limit on 737 production, further impacting Boeing's output.
The news comes amidst heightened scrutiny on Boeing's manufacturing processes, triggered by a January incident where a door component detached mid-flight on a 737 MAX 9. This has cast a shadow over Boeing's 737 program, a crucial source of revenue for the company.