Boeing's Financial Maneuvering Amid Production Turmoil

Boeing is undertaking a financial maneuver, aiming to raise up to $25 billion through stock and debt. The company faces challenges including a downturn in 737 MAX production and ongoing union strikes. Analysts suggest that Boeing needs significant funds to maintain its credit ratings, with potential downgrades looming.

Boeing announced plans on Tuesday to bolster its financial standing by raising up to $25 billion. This initiative comes amid a production slump and regulatory challenges, marked by a significant drop in 737 MAX jet production following a mid-air door panel mishap earlier this year.

As part of its strategy, Boeing has arranged a $10 billion credit facility and plans additional stock and debt offerings. Despite having cash reserves, the ongoing strike by thousands of union workers and potential downgrades threaten Boeing's financial stability.

The Machinists union strike costs Boeing over $1 billion monthly, and the company has announced 17,000 job cuts. Acting Labor Secretary Julie Su intervened recently in hopes of resolving labor disputes. Boeing needs substantial capital to keep its investment-grade credit, with $11.5 billion of debt due by 2026.

(With inputs from agencies.)