Boeing (NYSE: BA) shares have been hit hard by the COVID-19 pandemic, down 60% year to date. And with good reason.
The pandemic has caused air travel demand to crater, and has sent airlines scrambling to cut costs. The carriers have grounded significant portions of their fleets, and have curtailed growth plans. That means falling demand for Boeing planes.
Boeing had been counting on robust new plane sales to fuel growth, and the pandemic has dramatically altered the company's outlook for the next few years. In response, Boeing has gone into crisis mode, cutting its own costs and going to the markets to raise $25 billion in fresh debt. That bond sale was oversubscribed, indicating that while equity investors are concerned about the near-term prospect for Boeing, debt investors are still confident in the company's future.
Source Fool.com