Boeing’s crisis deepens
33,000 Boeing machinists voted against a new labor deal.
By
November 10, 2024
Yesterday, Boeing posted a $6.17Bn quarterly loss, its biggest since 2020.
To add insult to injury, 33,000 Boeing machinists voted against the latest labor proposal, which included 35% wage increases over four years, a $7,000 ratification bonus, increased 401(k) contributions, and other changes.
Besides the apparent problem—a massive outflow of money—Boeing’s investment-grade status is at risk. S&P Global Ratings is considering downgrading Boeing’s credit score to junk. Junk-rated companies face higher borrowing costs, which would be incredibly damaging to Boeing since they have $4Bn in debt coming due in 2025 and $8Bn in 2026.
Boeing’s crisis is a death spiral of its own making.
