Boeing Aims To Increase Production Of 737 MAX

Boeing is actively seeking approval to increase production of its popular 737 MAX jet; however, approval may not come until year-end.

The planemaker’s CEO, Kelly Ortberg, who was recently appointed with the challenge of turning around the company’s fortunes, confirmed the development following the unveiling of its quarterly performance.

Much of the discussion surrounding a production increase for the popular 737 MAX series centres on restrictions being implemented on program and production rates due to persistent quality issues and the problematic history of the aircraft.

Almost immediately after the door blowout incident involving a MAX jet at the beginning of 2024, the FAA imposed harsh restrictions on Boeing and the program, which, although the plane maker agreed were warranted, have had a profound impact on the business on a day-to-day basis.

The financial position of Boeing has been highly volatile following the implementation of production caps, and customer confidence has fluctuated at times. Boeing is now on a long road to recovery.

Despite this, it won’t be easy, as the 737 MAX continues to be in the limelight and has now solidified itself, among many members of the public, as an aircraft name that will never not be tarnished.

For Boeing to win over the Federal Aviation Administration, there needs to be considerable and sustained evidence that improvements are being made across the business, with a greater focus on safety and maintaining the highest quality standards.

Global aircraft lessors, among other airlines that have visited the production floor over the last twelve months, have highlighted the noticeable improvements. However, it remains more complex for the FAA to grant Boeing the necessary permission to ramp up production of its popular 737 MAX.

Across the first quarter, Boeing reports an increase in production, reflecting the general stability that the company is finally achieving. Forecasting still shows a hope to reach an output rate of 38 units per month at some point this year.

Things Are Improving At Boeing

All discussion of the 737 MAX and its potential production ramp-up rate finally materialising follows the publication of broader quarterly results by the American planemaker.

The first quarter reported an overall net loss of USD 31 million, which, although it resulted in a loss, represents a considerable year-over-year improvement and is a positive step towards turning around the business.

In the same quarter one year prior, Boeing reported losses of USD 355 million, a substantial figure that was not alleviated by the door blowout incident that occurred and subsequent groundings, but rather highlighted the challenges Boeing faced as a company during this tumultuous period.

Recovery has been at the forefront of the planemaker’s mind, and other improvements were made as revenue rose by approximately 18% to USD 19.5 billion, a figure that exceeded analysts’ estimates.

For Boeing, some of the biggest jumps were in the form of aircraft deliveries, which increased by almost 60% year-over-year, as more planes were shipped than anticipated.

In fact, across the first two months of the calendar year, Boeing outperformed Airbus and narrowly lost to the European plane maker in terms of delivery rates for the first quarter. This is something to be commended for closing the gap so much.

Looking Ahead With China

Moving ahead, there remains considerable uncertainty about the impact of global tariffs, as China has rejected the delivery of new commercial aircraft from Boeing and is presenting challenges to the company regarding how it will address this matter.

The legalities of this can have a profound impact. However, Boeing does not find itself in a position where it is unable to find customers to take on these planes that may have been destined for China but are not going to eventuate as planned.

Already, Air India and Malaysia Airlines have publicly expressed their desire to take on types such as the 737 MAX, which would have been destined for a Chinese operator but have not eventuated due to global political tensions.