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[BUSINESS] · United States · 9 sources

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Boeing CEO reports 737 MAX production stabilization is taking longer than expected

Boeing CEO Kelly Ortberg announced that stabilizing the 737 MAX production rate at 47 aircraft per month is taking longer than anticipated. During a Morgan Stanley conference, Ortberg identified wing production at the Renton, Washington facility as a primary constraint preventing the company from reaching its target of 52 aircraft per month.

Regarding regulatory progress, Ortberg stated that certification for the 737 MAX 10, the largest variant in the family, is expected ‘very soon.’ While flight testing is complete, the company is finalizing documentation for the Federal Aviation Administration (FAA). The MAX 10 currently represents approximately 30% of the 737 backlog.

In the wide-body segment, the 787 Dreamliner production remains at eight aircraft per month. Delays in increasing this rate to 10 per month are attributed to engine supply issues and the slow certification of premium seats. Boeing's stock experienced a decline following these updates, reflecting investor concerns over production stability and the company's approximately $26 billion net debt.

Entities

737 MAX · Boeing · Federal Aviation Administration · Kelly Ortberg · Morgan Stanley · Renton

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