Boeing announced plans to raise up to $25 billion in new stock or debt over the next three years to strengthen its balance sheet after experiencing significant losses since 2018, including over $25 billion lost due to two fatal 737 Max crashes, AP News reports.
The company also secured a new $10 billion credit agreement for short-term liquidity amid ongoing worker strikes affecting aircraft production. The strike, now entering its second month, has drawn the attention of the Biden administration, with labor officials meeting with Boeing and union representatives. Boeing CEO Kelly Ortberg revealed plans to cut approximately 17,000 jobs (about 10% of its workforce) and delay the launch of a new 777 model.
Fitch Ratings noted that Boeing’s recent moves enhance financial flexibility, while Standard & Poor’s is considering a downgrade of Boeing’s credit rating. Boeing’s shares rose by 2% following the announcements.
