Boeing Faces Turbulence: Strike Extends Financial Struggles

Boeing's stock dropped after workers extended their strike, challenging the company's finances and reputation. The strike, primarily over pension plans, affects commercial jet assembly, including the crucial 737 MAX. CEO Kelly Ortberg faces pressure to resolve the strike amidst ongoing cash bleeding and potential financial refinancing.

Boeing shares took a hit, dropping 2.7% in U.S. pre-market trading after a vote by factory workers to extend a nearly six-week strike. This move has introduced further uncertainty into Boeing's efforts to stabilize both its financial standing and its image, which has been affected by recent management issues.

A significant 64% of the West Coast factory workforce rejected Boeing's latest contract proposal, causing a stall in assembly lines for key commercial jets. The offer, which proposed a 35% wage increase over four years but lacked a defined benefit pension plan, was insufficient for the workers, posing a challenge for CEO Kelly Ortberg.

Boeing anticipates financial strain due to the ongoing strike, which also affects its supplier network. The company has filed for the ability to raise $25 billion to protect its investment grade and secured $10 billion in credit amidst the potential need for a capital raise. The prolonged labor standoff and financial difficulties are exerting significant pressure on the company.

(With inputs from agencies.)