Visits: 4
Boeing CEO Dave Calhoun said Wednesday that the company will not cut its dividend despite the extended grounding of its 737 Max jet.
“I believe we have the financial capacity and capability to do the things we need to do … but the recovery, when we get to the end and start shipping airplanes, etc., supports maintaining our dividend. And I will stay on that path unless something dramatic changes,” Calhoun said on a conference call with reporters.
Shares of Boeing were down 1.4% on Wednesday, and are down roughly 30% since last February, before the Max was grounded. The stock has a dividend yield of about 2.66%.
The company announced Tuesday that it doesn’t expect its plane to return to service until the middle of the year. Regulators grounded the Max last March after two fatal crashes that killed 346 people.
Calhoun said the decision to push back the expected approval date by regulators was triggered by the recommendation to have pilots undergo simulator training.
Former CEO Dennis Muilenburg, who was ousted in December, was denied severance but still walked away with more than $60 million in pension benefits and stock.
The nearly yearlong grounding of the plane has led to waves of cancelations by airlines. United Airlines said Wednesday that it doesn’t expect to fly the Max at all during the key summer season.