Boeing Prepares to Increase 737 MAX Production Starting in October
Boeing is showing signs of a sustained recovery in its most important program. According to sources close to the company who spoke with Bloomberg, the aerospace giant has informed its suppliers that 737 MAX production could increase to up to 42 units per month in October. This is a key step in its plan to normalize operations and regain ground against Airbus.
The company is seeking approval from the Federal Aviation Administration (FAA) to move forward with its plan to increase production. The intention is to achieve another increase in April and a further one towards the end of 2026, which would allow it to reach a rate of 53 aircraft per month by the close of next year.
A Sign of Recovery After Years of Turbulence
For investors, this move represents the clearest indication yet that Boeing is beginning to reassert control over its manufacturing processes and rebuild trust with the US regulator, which was lost after a series of operational and management missteps.
Monthly production of the 737 had been capped at 38 units following a serious incident that led to a complete leadership restructuring.
However, Boeing’s internal plans still depend on validation from the regulator. “Safety drives everything we do,” the FAA stated in response to inquiries about the potential rate increase. The agency added that it will continue to oversee Boeing’s production processes to ensure any increase is done safely.
→ Boeing 777X Entry into Service Delayed Until 2027, Bloomberg reports
Financial Impact and Market Response
The announcement boosted Boeing’s shares by 1.2% in pre-market trading in the US on Monday. Year-to-date, the stock is up 22%, compared to the 9.9% gain of the Dow Jones Industrial Average.
Accelerating the production rate is crucial for the company to reduce debt, improve its cash flow, and compete with Airbus jets, whose A320neo family continues to dominate global sales. Boeing executives have indicated that positive cash generation will materialize as 737 production increases, a key metric investors will watch closely in the third-quarter results.
Ortberg Confident in Hitting Production Target
CEO Kelly Ortberg has emphasized that any increase in the manufacturing rate will depend on progress in the factories and regulatory approval. During a conference in September, he expressed optimism:
“We feel pretty good about the process. We need to stabilize the key indicator of jobs requiring rework, and we continue to plan to reach 42 units per month by the end of the year.”
The FAA has been monitoring six performance metrics related to manufacturing quality, supply shortages, and parts that are installed or repaired after the aircraft leave the assembly line.
Boeing plans to maintain the rate of 42 aircraft for six months before requesting another increase, ensuring that both its technicians and suppliers can sustain the effort without compromising quality.
Supply Chain Risks and Competitive Pressure
As production accelerates, Boeing faces the challenge of avoiding shortages of engines and components, a problem that also affects Airbus. Some suppliers are skeptical about the US manufacturer’s ability to reach 50 aircraft per month next year due to global supply chain constraints.
Despite this, the company has received recognition for its recent efforts to improve industrial efficiency. Michael O’Leary, CEO of Ryanair Holdings and one of Boeing’s largest customers in Europe, stated that the manufacturer has conveyed confidence in its ability to raise production before the end of October.
Boeing Aims to Leave Turbulence Behind and Look to the Future
The increase in 737 MAX production represents more than just a technical adjustment for Boeing: it is a test of resilience and a decisive step towards regaining leadership and credibility in the global commercial aviation market.
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