How bad is Boeing getting hammered?

Boeing's Financial Woes

Quartz Media

Oct 16, 2024

Boeing plans to raise up to $25B through stock and debt offerings over the next three years while also entering into a $10B credit deal with lenders, according to regulatory filings yesterday. The jetmaker seeks to bolster its finances and increase its cash balance as it works to avoid a potential downgrade to junk status by credit rating agencies, which would trigger higher borrowing costs.

The move comes as Boeing has faced a series of setbacks this year, including renewed quality concerns after a midair panel blowout on a 737 Max 9 in January and an ongoing machinists strike that has halted some production. The company is also laying off roughly 17,000 employees—10% of its workforce—as part of cost-cutting measures and is delaying the rollout of new plane models.

Boeing has failed to turn a profit since 2018 and has roughly $58B in debt, up from about $9B a decade ago. The company's stock has fallen nearly 56% over the last five years.