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Boeing CEO wants to increase 737 MAX production throughout the rest of the year

Boeing aims at increasing production of its most popular 737 MAX aircraft to 42 aircraft a month within the next few weeks and then to 47 a monthly in early 2026. This was announced by Chief Executive Kelly Ortberg on Thursday.

After Ortberg stated at the Bernstein Strategic Decisions Conference that he wanted to reach 47 aircraft per month production by 2025, the share price of the U.S. airplanemaker jumped 5%. He corrected himself a few minutes later by saying that the company should be preparing to reach this level of production before the end the year.

Boeing aims to maintain production at 38/month. This was the level set by the U.S. Federal Aviation Administration (FAA) in 2024, after a mid-air accident brought the safety and quality of the planemaker's production program into question.

He said that production defects in the 737 program have decreased by 30%. "Virtually all of our customers are reporting an improved quality of aircraft at delivery."

Boeing must increase production to become cash-positive again, something Ortberg said previously he expected to happen in the second half. It spent $2.3 billion on cash in the first quarter.

Ortberg stated, "I believe the financial performance of the company will follow its production performance. I think that we should think about it in this way."

He said that the company was making progress in certifying both the smallest MAX and the largest MAX with the U.S. Federal Aviation Administration. Partly due to concerns about the engine deicing system, MAX 7 and MAX 10 were delayed. He said that the company would finish testing its fix in July and be able to certify aircraft before the end of the calendar year.

Boeing's backlog of orders includes almost 1,200 orders for 737 MAX 10 and nearly 332 orders MAX 7.

Ortberg said that Chinese Airlines will resume Boeing deliveries in June. China halted deliveries to Boeing in April as a retaliation for tariffs imposed on President Donald Trump. Boeing estimates that the tariffs will have an impact of less than $500,000,000, according to him.

(source: Reuters)