Cramer: Boeing Chairman Calhoun's candid remarks eased my concerns about 737 Max fallout

CNBC's Jim Cramer said Tuesday that candid remarks from Boeing's chairman earlier on "Squawk Box" eased some of his concerns about the embattled aircraft maker.

"A lot of my worries were put to rest," said the "Mad Money" host, shortly after Boeing's David Calhoun was interviewed. "I did feel better."

Boeing has been under intense scrutiny after two of its 737 Max jets fatally crashed within five months of one another, leading to the mid-March grounding of the planes. The ongoing global grounding has driven up costs, dented airlines' profits, rippled throughout Boeing's supply chain and even the broader economy.

The company is also facing a criminal investigation and several other probes over the Federal Aviation Administration's certification of the plane and its design. The victims' relatives and pilots have also sued Boeing.

However, Calhoun's statements helped revive Cramer's faith. "I am completely rooting for them and I believe they're going to get past this."

Shares of Boeing were up more than 2% in afternoon trading Tuesday.

Calhoun, a longtime Boeing board member and Blackstone executive, assured investors that a comprehensive overhaul of the company's safety and transparency procedures would take place. He also defended CEO Dennis Muilenburg, who faced tough questions on Capitol Hill last week. Calhoun, who succeeded Muilenburg as chairman last month, said, "From the vantage point of our board, Dennis has done everything right."

Boeing in the second quarter took a $4.9 billion after-tax charge to compensate airlines over the forced grounding, but final amounts are unknown because regulators haven't allowed the planes to resume flying. Even so, Calhoun said Boeing can handle the "fair number of settlements" that it's likely to pay.

"Every box was checked," Cramer said. "If you don't feel better about Boeing after this interview, I guess you just have it in for Boeing."

Cramer was recently critical of the jet maker, ripping into Boeing last month after the leak of messages from a former test pilot expressing concern about the 737 Max, two years before the first deadly crash in October 2018.

"Wall Street got had," Cramer said at the time.

— CNBC's Leslie Josephs contributed to this report.


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