Boeing says it will need to borrow money next six months on fallout from coronavirus

“We know we’re going to have to borrow more money in the next six months in order to get through this really difficult moment, to provide the right liquidity to the supply chain that represents our industry,” Calhoun said during the company’s virtual annual general meeting.

“Our first priority is going to be to pay that back, the principle and the interest that goes with it.”

Boeing would continue ordering parts and services from its suppliers to ensure the smaller companies have enough business to keep them afloat during the downturn, he said.

“We have to keep that flow of money going to the supply chain so that they have some predictability around how they operate.”

Boeing is trying to bring its 737 MAX jet back into service after two fatal crashes, even as the aviation industry slumps because of the coronavirus, which has dried up demand for passenger air travel.

Calhoun said Boeing expects it will take two to three years for travel to return to 2019 levels and an additional few years more for the industry’s long-term trend growth to return.

Calhoun warned shareholders he is not confident Boeing will resume paying dividends in the medium-term.

“That process could take three to five years... It’s going to be a while before dividends come back.”

The largest U.S. planemaker, which reports first-quarter earnings Wednesday, last month drew down its entire $13.8 billion credit line and suspended its dividend. Boeing’s first- quarter deliveries were a third of the 149 seen a year earlier and the lowest since 1984 for the first quarter.

Boeing shares rose 0.7% to $129.87 in afternoon trading.

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