Global aircraft manufacturer Boeing has appointed Jesus “Jay” Malave, the current CFO of Lockheed Martin, as its next finance chief, effective Aug. 15. Malave will replace Brian West, who is stepping down after four years in the role and will remain with the company as a senior adviser, Boeing announced Monday.
Malave enters the role with no shortage of challenges as the company is on a recovery path from a series of operational and reputational setbacks. In September 2024, more than 33,000 machinists walked off the job in a strike that halted commercial airplane production. Shortly after, though CEO Kelly Ortberg said the decisions were unrelated, Boeing announced a hiring freeze and 17,000 job cuts.
West, the soon-to-be former CFO who publicly acknowledged the strike’s financial risks in the fourth quarter of last year, joined Ortberg in working to reach a resolution as pressure mounted from labor and Washington.
Then, the Acting Labor Secretary Julie Su traveled to Seattle the following month to help bring both sides back to the table. Boeing’s seven-week West Coast strike ended after union workers approved a new contract with a 38% pay increase, easing pressure on leadership and allowing jet production to resume at the cost of $9.7 billion.
Outside of labor issues, Boeing is still reeling from a string of high-profile safety incidents involving its aircraft. These include near-catastrophic midair failures as well as multiple deadly crashes in 2018 and 2019, and recently, the crash of Air India Flight 171, which is currently under investigation. These incidents continue to draw widespread public criticism of its manufacturing standards and increased scrutiny from regulators.
The company has faced growing reputational damage, exacerbated by whistleblower allegations, public relations blunders and the ouster of multiple top executives, including former CEO Dave Calhoun. Allegations of whistleblower intimidation have further fueled concerns about Boeing’s internal culture and its organizational commitment to transparency and accountability.
Boeing had previously set a goal of generating $10 billion in annual free cash flow by mid-2025, but the strike and ongoing quality concerns have placed that benchmark in doubt. Still, Boeing continues to benefit from limited global competition in commercial aircraft manufacturing and a substantial backlog of jet orders, which has provided the company with financial resilience even as scrutiny intensifies.
Despite first-quarter revenue rising 18% year over year to $19.5 billion, Boeing reported a GAAP loss per share of $0.16 and a core loss per share of $0.49, with negative free cash flow totaling $2.3 billion. The commercial backlog expanded to $545 billion, while 130 commercial deliveries and improved performance across segments contributed to quarterly revenue growth.
Although there’s strong demand for its products and services, Boeing remains stuck in a cycle of delayed deliveries, quality issues and supply chain setbacks that continue to burn cash. Until the company rebuilds operational stability and regains trust from regulators and the public, its backlog of orders is unlikely to sustain its financial goals long term.
