Boeing wants to raise up to $25 billion as the strike strains its finances

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U.S. plane maker Boeing on Tuesday unveiled measures to replenish its cash flow, including plans to raise up to $25 billion as it tackles recurring production problems and a major strike in the United States.

In a regulatory filing, the aviation giant revealed plans to raise the funds through the sale of stock and debt.

Previously, the company also announced that it had reached an agreement to raise $10 billion in loans from several banks.

The moves come amid a machinists' strike in the Seattle area that effectively shut down 737 MAX and 777 assembly plants.

About 33,000 Boeing workers in the Pacific Northwest have been on strike for nearly a month over higher wages and improved pension benefits.

Workers complain about more than a decade of nearly flat wages at a time of rising inflation.

Boeing employees at the International Association of Machinists and Aerospace Workers (IAM) quit their jobs on September 13 after overwhelmingly rejecting a contract offer.

According to the Anderson Economic Group, the direct financial impact of the first month of the strike cost Boeing more than $3 billion.

The IAM said in a statement last week that it was “ready and willing to resume negotiations at any time.”

But it added on Monday: “While it is important to return to the table, the Union remains committed to reaching an agreement that truly reflects the respect our members have earned and deserve.”

Last week, Boeing said it plans to cut 10 percent of its workforce as the company expects a big loss in the third quarter amid industrial action.

The 17,000 job cuts worldwide will affect executives, managers and employees, according to Chief Executive Kelly Ortberg, who added that the company must “adjust our workforce levels to align with our financial reality.”

Details of the cuts are expected to be announced this week.

The work stoppage has only exacerbated the company's litany of problems.

As a result of the strike, Boeing has announced that it will postpone the first delivery of the 777X from 2025 to 2026. The much-delayed jet was originally scheduled to enter service in January 2020.

Boeing was thrown into further turmoil in January when a panel on an Alaska Airlines plane broke in flight, requiring an emergency landing on a 737 MAX, the plane involved in two fatal crashes in 2018 and 2019.

This led the Federal Aviation Administration to tighten oversight of Boeing's production processes and limit the company's output. Due to the IAM strike, production on the MAX has now stopped.