Boeing will push back its 2024 earnings estimation as they plan to burn more cash in the first quarter to address issues associated with Boeing 737 this month alone.

Per CNBC, the company will spend more money than initially predicted to sort out quality concerns arising from recent issues. This means the initial expectation for Boeing's 2024 earnings will also change from $10 billion. 

"It's going to take us longer to get there than we planned. But we believe that the actions that we're taking right now better position us for that long term," said CFO Brian West.

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Why Boeing Will See Lesser 2024 Earnings?

The low 2024 earnings can be attributed to Boeing's plans to reduce the production rate of its Boeing 737 aircraft. This decision reflects a shift in focus towards ensuring higher quality standards in manufacturing, even if it means producing fewer planes each month.

The choice to restrict 737 production coincides with increased attention on Boeing's manufacturing methods, driven by recent events that have cast doubt on safety and dependability. 

A particularly concerning incident involved a Boeing 737 MAX 9 aircraft in January, according to VCPost. Investigations showed that a door plug detachment happened during a flight, leading to a renewed examination of Boeing's suppliers and manufacturing collaborators.

The FAA has since called for the implementation of rigorous quality assurance protocols. 

West also announced that Boeing would only accept deliveries of fully compliant fuselages from Spirit in the future. Currently, Spirit manufactures the fuselage for the Boeing 737, which is then transported to a Boeing facility in Washington for final assembly. 

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