Boeing, which is accumulating losses and is currently paralyzed by a strike, announced this Monday, October 28, the launch of a capital increase of around $19 billion to strengthen its cash flow. The American aircraft manufacturer has just recorded its worst quarterly loss in four years, more than $6 billion, against a backdrop of repeated accidents and incidents affecting its aircraft. It is also suffering from a strike of more than 33,000 workers, which has paralyzed its two main factories since September 13.
Boeing will offer 90 million common shares on the market – valued at around $13.9 billion at current prices – in addition to $5 billion in depositary receipts.
Downsizing
The group has announced measures in recent weeks to preserve its cash flow, including a 10% reduction in its global workforce (almost 171,000 employees at the end of 2023). It is also considering the sale of its space activities to refocus the group and strengthen its financial situation, reported Friday Wall Street Journal.
The group is still affected by a large-scale social movement. Employees in the Seattle region rejected the latest draft social agreement proposed by the American aircraft manufacturer and last week renewed the strike which has paralyzed two crucial factories for more than a month.
The aeronautics giant was already struggling to recover after the 737 MAX 8 crashes in 2018 and 2019, which left 346 dead, and the Covid-19 pandemic. According to an AFP calculation, Boeing suffered more than $31 billion in net losses between the start of 2020 and the end of September 2024.