At the start of 2024, one company you might have expected to do better was Boeing. The company has a duopoly with Airbus in commercial airlines. If you fly, then the chances are very high you are in an Airbus or a Boeing plane. The company had introduced the Max series, regulations had gone through to make it an even better plane and the order book was building to over 3 years. People were flying again and the large airliners were ordering new planes to replace the old ones. Boeing also has a robust military aircraft and defense budgets are not being cut. Then things changed, a door blew out in an Alaskan Airliner and the battery for cockpit voice recorders needed to be fixed.

In an article by Allison Lampert and David Shepardson of Reuters, Boeing will burn rather than generate cash in 2024. CFO Brain West told the Wolfe Research Global Transportation and Industrials Conference he expects Boeing’s free cash flow to be negative compared with March’s outlook for positive cash generation in the low single digit billions.

Mr. West said due to regulatory issues commercial jet deliveries will not step up in 2nd quarter compared with the first 3 months. We have frustrated and disappointed customers owing to the supply chain and production issues. We see progress, but everyone wishes it was faster.

Boeing was aiming for 38 jets a month at its assembly plant outside of Seattle, but that fell to low as single digits in April.

Linking to dividend paying stocks, execution of the business plan is a refrain you often hear. Even companies that have all the advantages in the world, need to execute on their business plans. While Boeing is fortunate there are few alternatives, once it does execute on its business plan it will be a stock which you can buy and hold and watch the planes go by.

There are more questions than answers, till the next time – to raising questions.