Boeing is “Pretty Confident” It is Ready to Increase 737 MAX Output
Boeing is “pretty confident” that it can raise the monthly production of its best-selling aircraft, the 737 MAX, to 42 units. This was stated by the company’s CEO, Kelly Ortberg, during his speech at the Bernstein Strategic Decisions conference, where he also hinted at plans to negotiate with regulators to increase this figure to 47 units by the end of 2025.
The news had an immediate impact on the market. Boeing’s stock rose by 5% following the executive’s remarks. However, Ortberg later clarified that the goal is not to reach that rate before the year ends but to begin working with regulatory bodies to make it possible.
From Stability to Expansion: Boeing’s Progressive Approach
Currently, Boeing is focused on stabilizing its production at 38 aircraft per month, a cap imposed by the U.S. Federal Aviation Administration (FAA). This limitation was introduced after an in-flight incident that brought safety and manufacturing quality under scrutiny.
Ortberg was clear: before discussing an increase, production must remain stable. “We have rate increases in our plans, but they will be in increments of five aircraft per month, with at least six months between each step,” he explained.
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Quality Improvements and Reduction in Defects
Despite the restrictions, there are positive signs. According to Ortberg, production defects in the 737 program have decreased by 30%. Additionally, customers have reported notable improvements in the quality of delivered aircraft. “Virtually all our customers are seeing higher quality at the time of delivery,” he stated.
The Financial Goal: Returning to Positive Numbers
Increasing production rates is not just an operational target but also a financial one. Boeing aims to return to positive cash flow in the second half of the year, a goal Ortberg has mentioned multiple times.
During the first quarter of 2025, the company recorded a cash burn of $2.3 billion. “I believe financial performance will follow production performance, and we need to think about it that way,” the CEO emphasized.
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