Boeing at a Crossroads: Strike Extends Crisis

Boeing faces financial turmoil as shares drop 4% following a prolonged strike by U.S. factory workers. The strike, stemming from contract disputes over pensions, threatens to further delay the company's recovery from previous crises and potentially impact its credit rating.

Boeing's financial struggles deepened on Thursday, as its shares plummeted 4% during U.S. pre-market trading following an extended strike by factory workers. The ongoing industrial action, which has entered its sixth week, adds a layer of uncertainty over Boeing's financial recovery plans and efforts to mend its reputation.

Despite offering a 35% wage increase over four years, workers rejected the absence of a defined pension plan, a key sticking point. The stalemate poses a significant challenge for CEO Kelly Ortberg, who had promised improved relations with factory workers since taking office in August.

S&P Global Ratings' Ben Tsocanos has warned of potential credit downgrading should the strike prolong, while analysts speculate on the need for Boeing to increase its offer. With cash burn concerns looming, Boeing is considering a capital raise to stabilize operations amidst supplier difficulties and past crises.

(With inputs from agencies.)