Investors speak up as problems with Boeing 737 delivery delays mount

ALEXANDRIA, Va.: When it releases its quarterly earnings call this week, Boeing will look to see if issues with its latest 737 MAX production will affect its ability to meet annual airline delivery targets and profitability.

After an investor requested details of the problem, Boeing said two brackets were improperly attached to “significant” portions of the 737.

Analysts say the manufacturing issues affecting the MAX are not safety issues and the jets continue to fly, but Boeing has limited plans to fix the issues and the overall economic impact. provided only information

Vertical Research Partners analyst Robert Stallard, quoted by The Associated Press, said: “Whether it’s affecting deliveries, cash flow or everything else, we’re going to put some numbers and scale on the significance of this. I want to know.

“The biggest question is whether Boeing will update its financial guidance for 2023, when it will deliver at least 400 737 MAXs this year and start at $3 billion,” said JP Morgan analyst Seth Saifman. We’re looking to generate $5 billion in free cash flow. That’s achievable.”

“Boeing has shown a fairly wide range of expected annual cash flow amounts, and there are many ways to influence cash across the company,” Seifman added.

Boeing CEO Dave Calhoun said last week, under pressure from investors, that he would not change the current MAX production ramp-up plan but delayed deliveries, with subsequent delivery delays pushing the airline out of its summer schedule. It said it would cut about 9,000 seats.

Boeing also reveals that the KC-46 tanker program will cost less than $500 million due to the 767’s fuel tank defect.