Boeing CEO Kelly Ortberg announced that the company has successfully met the Federal Aviation Administration’s (FAA) requirements to ramp up its production of 737 Max aircraft to 47 jets per month. Currently, Boeing is producing 42 jets monthly, but Ortberg expressed confidence at a recent Bernstein conference that the transition to 47 per month is underway.
“We’ve passed the capstone review for rate 47,” Ortberg stated, indicating that the production line is being adjusted accordingly. He anticipates a few months of stabilization before fully achieving this new production rate. Previously, in an earnings call, he had indicated that the 47-a-month target would be reached this summer and reiterated his confidence in meeting this goal.
While Boeing has reached as high as 57 aircraft per month in the past, Ortberg emphasized that current safety and quality protocols prevent the company from maintaining that level. He expressed a long-term ambition to increase production to 63 jets monthly, citing market demand as a driving factor. However, he acknowledged that reaching this higher target will require significant effort and time.
Looking ahead, Ortberg project that achieving a production rate of 52 jets per month may take at least six months following the implementation of the new rate, anticipated for July or August. "I think the whole world’s watching to make sure we make 47 and 52,” he noted.
Why this story matters: Increased production rates can indicate Boeing’s recovery and responsiveness to market demand.
Key takeaway: Boeing is on track to increase 737 Max production to 47 jets per month, with future growth aspirations.
Opposing viewpoint: Some critics may question Boeing’s capacity to maintain safety and quality while increasing production rates.
