Boeing’s (BA) expected recovery, including its target of boosting production of Max aircraft to 38 units per month by the end of 2024, will likely be delayed by an ongoing strike by unionized workers which began Friday, S&P Global Ratings said Monday. S&P said the employee walkout by machinists will not immediately affect its credit rating or its longer-term outlook for the planemaker. The ratings agency said Boeing should be able to weather the financial impact of a strike lasting only a few weeks or so, noting the company had roughly $12.6 billion in cash on hand at the end of June and also has access to around $10 billion in undrawn credit facilities. Longer term, however, the S&P analysts said, “We believe an extended strike would be costly and difficult to absorb, given the company’s already strained financial position.” S&P currently rates Boeing debt at BBB-. Boeing already is

Shares in Boeing fall in premarket trading in the U.S. after the company’s largest union went on strike. Its stock is down nearly 4% at $156.55 after workers rejected a contract offer that would have raised pay by 25% over four years. In 2008, a 57 day strike over pay negotiations cost Boeing an estimated $100 million a day. The strike comes at a time when the indebted plane manufacturer may require an enormous equity raise to fix its balance sheet, Robert Stallard, equity analyst at Vertical Research Partners, wrote ahead of the vote to strike. In some delivery lines, Boeing has an excess inventory of material and therefore the strike may be a good opportunity to reset supplier deliveries, he adds. Boeing’s Frankfurt listed shares trade down 4% at 141.68 euros.

Boeing’s (BA) labor troubles continued after union rank-and-file on Thursday rejected a tentative contract proposal negotiated by the company and the union leadership and opted to go on strike. The International Association of Machinists and Aerospace Workers said on its website that 94.6% of the 30,000 Boeing workers voted to reject the contract and 96% voted in favor of a labor action. The union said its negotiating team “will regroup and begin planning the next steps on securing an agreement that our membership can approve.” Boeing said in a statement that it was clear the tentative agreement was unacceptable to its workers. “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement,” the company said. Shares of the plane maker were down nearly 4.8% in Friday’s premarket activity.

Boeing’s (BA) deliveries and orders declined month over month for August, while the plane maker’s share price was falling in late-afternoon trade. The company delivered 40 jets last month, including 32 737 Max aircraft, down from a total of 43 in July, but up from 35 a year earlier, according to data posted on its website. It booked 22 orders in August, down from 72 the previous month and 45 a year earlier. Boeing shares were falling 2.3% in Tuesday late-afternoon trade. The company’s latest 737 supplier master schedule indicates that Max production will now reach 42 per month in March 2025, compared with a previous estimate of September this year, Reuters reported Monday, citing three industry sources. “We note the (Federal Aviation Administration) production limit on the Max of 38 (per month) remains in place indefinitely as (Boeing), investors, and the aerospace community overall wait for a green light