Boeing’s $19 Billion Share Sale Amid $10 Billion Strike Losses

Boeing is making a significant move to bolster its financial situation through a nearly $19 billion share sale in response to severe liquidity needs caused by ongoing challenges, including a significant strike and persistent manufacturing issues. This labor strike, highlighted by the Anderson Economic Group, has already racked up losses surpassing $9.5 billion, marking it as the most costly in 2024. The methodology for calculating these losses includes factors such as new wages, losses to suppliers, and customer impact, while excluding variables like unemployment benefits and reputational damage. The largest chunk of Boeing's losses, estimated at $5.5 billion, stems from lost earnings affecting its shareholders, hence the urgent need for new capital. Despite its origins in the Seattle area, the repercussions of the strike extend across the country due to Boeing’s vast supplier network, impacting smaller companies that lack the financial resilience to weather such disruptions. In comparison to previous strikes, this incident stands out not just for its scale but for the unique way it intertwines with the broader economic landscape, comparable only to significant strikes like the UAW strike against General Motors, Ford, and Stellantis.