Additionally, Boeing recently stopped supplying to China over a lithium battery problem brought up by Chinese aviation authorities.
Spirit, which was once a part of Boeing until being spun away in 2005, has been the subject of negotiations between Boeing and Spirit.
Following a senior corporate official's prediction of another quarter of weak jet deliveries, which would likely result in negative cash for the whole of 2024, Boeing shares were severely damaged on Thursday.
After Chief Financial Officer Brian West suggested that the second quarter's cash performance could be "a little worse" than the first, when Boeing burned through $3.9 billion in cash due to high operating costs and low incoming revenue from fewer plane deliveries, the aviation giant's shares saw a 5.3 percent decline shortly after midday in New York.
Prior to this, Boeing had predicted positive cash creation for 2024 in the low billions. However, West retracted that prediction on Thursday, suggesting that the business will probably generate less income than expected in the year.
According to West, the second half of 2024 could see positive cash flow due to a combination of factors including increasing plane deliveries, better revenues from a major military contract, and fewer expenses associated with maintaining an inventory of aircraft.
However, according to West, the gains are not anticipated to balance the losses in the first half of 2024.
Because of a decreased 737 MAX manufacturing cadence after an almost catastrophic incident on an Alaska Airlines aircraft on January 5, Boeing's financial outlook is poor.
Following that incident, in which a fuselage panel blew off in midair, Boeing changed its manufacturing processes, increased quality control inspections, and temporarily halted production to prioritize safety.
Furthermore, West said that Boeing has lately stopped supplying to China because of a problem with a lithium battery that Chinese aviation authorities brought up.
Officials from China are working with Boeing, "but that will very likely have an impact in the quarter on deliveries in our cash flow," according to West.
Federal Aviation Administration officials have been closely monitoring Boeing, and as a result, the corporation has been mandated to submit a thorough action plan by the end of May in order to resolve safety issues.
According to West, Boeing anticipates "getting some good feedback" from the FAA the next week about the enhancements, which include more supervision and collaboration with the contractor Spirit AeroSystems.
Spirit, which was once a part of Boeing until being spun away in 2005, has been the subject of negotiations between Boeing and Spirit.
West expressed optimism that he would "get something signed" in the second quarter about the acquisition of Spirit, which also provides services to Airbus, a competitor of Boeing.
According to West, Spirit still has to think about its future plans for additional clients.
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