Boeing's Cash Drain Worsens Amid 737 Max Crisis

Boeing predicts a significant cash outflow of $4 billion to $4.5 billion in the first quarter due to regulatory scrutiny and reduced output of its 737 Max jetliner following a mid-air accident in January. The company's CFO expects negative margins of about 20% in the first quarter and for the year, with production rates set to be lower in the first half and then rise again later in the year. The slowdown is impacting airlines, with Ryanair Holdings CEO stating that summer capacity in Europe will be affected by Boeing's delivery delays. Despite the challenges, Boeing has sufficient reserves and is considering acquiring Spirit AeroSystems Holdings Inc. in cash and debt. Regulatory pressure is intensifying as US regulators urge Boeing to tighten control over workmanship following a recent fuselage failure incident.