Why Shares of Boeing Are Falling Today
Shares of Boeing (NYSE: BA) traded down more than 6% on Thursday after the company said it is offering early-retirement and buyout packages to its workforce. The move is the clearest sign yet that the aerospace giant believes the travel slowdown caused by the COVID-19 coronavirus pandemic is likely to last well beyond the outbreak.
Boeing shares have been hit hard during the pandemic-related sell-off, losing nearly half of their value in March. Airlines are scrambling to cut flights, ground planes, and freeze spending in response to a drop in travel demand, and the carriers seem unlikely to ramp up spending quickly should the U.S. economy fall into a deep recession.
Boeing, in response, has suspended its dividend and requested financial assistance from Washington, but any hope for a quick recovery was quashed Thursday after CEO Dave Calhoun said in a memo to workers, "It will take time for the aerospace industry to recover from the crisis."
Source Fool.com
