Boeing Stirs Fears of Cash Crunch With Tab for 737 Max at $9 Billion and Rising
- Company says priorities are ending flying ban, reducing debt
- Planned output cut for 787 Dreamliner and 777 adds to pressure
Photographer: David Ryder/Getty Images
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Boeing Co.’s $9.2 billion tab for the grounded 737 Max is combining with sales pressures on two wide-body models to put the planemaker in cash-conservation mode.
The cash drain will peak next year when the jet is flying again and production starts to shift into a higher gear, Boeing Chief Financial Officer Greg Smith said Wednesday. That will coincide with a factory slowdown for the 787 Dreamliner and the 777, eroding revenue from the company’s top two long-distance models.