Boeing (BA, Financial) announced plans to raise up to $250 billion through new stock or debt issuance to ease the financial burden accumulated over the years. The company has also secured a $10 billion supplementary credit line with several U.S. banks. Following this news, Boeing's stock price rose by 1.76%, reaching $151.615.
Regulatory filings indicate that Boeing might strengthen its financial position over the next three years by raising funds and negotiating new loan agreements. Since early 2019, Boeing has incurred losses exceeding $250 billion. The ongoing strike by its primary aircraft manufacturing workers, now in its second month, is further straining its finances by affecting cash flow. Boeing has already expended over $1 billion in cash, with remaining cash and securities totaling $10.3 billion as of September.
Last week, Boeing's new CEO, Kelly Ortberg, announced plans to reduce the workforce by about 10%, equating to approximately 17,000 positions, and delay the release of a new 777 aircraft model. Production of the current 777 and the best-selling 737 Max has been halted due to the strike.
