Boeing CEO Kelly Ortberg announced that the aerospace manufacturer has successfully met the Federal Aviation Administration's (FAA) requirements to increase the production rate of its 737 MAX aircraft to 47 units per month. This development signifies a crucial step for Boeing as it aims to boost output following regulatory approvals.
Ortberg stated that the company is currently producing 737 MAX jets at a rate of 42 per month. Speaking at a Bernstein conference, Ortberg confirmed that Boeing has passed the necessary capstone review for the 47-per-month rate. "We've passed the capstone review for rate 47, so we are now in the process of running the line at the 47-a-month rate," Ortberg said. He anticipates reaching this new production level within the next couple of months, noting, "It may take a little bit longer, but we're off and rolling now for the 47-a-month rate, and we should be there in the next couple months."
This target aligns with previous projections. In Boeing's most recent earnings report last month, Ortberg said he expected the company to ramp up the production of its bestselling aircraft to 47 a month this summer. On Wednesday, he expressed that Boeing is "highly confident" it is ready to meet this rate.
While Boeing has historically produced aircraft at higher rates, reaching up to 57 per month, Ortberg indicated that current safety and quality processes may not sustain such levels at this time. "While Boeing has previously seen production as high as 57 aircraft a month, Ortberg said he doesn't believe the company can currently sustain that rate with its safety and quality processes," the report stated.
Looking ahead, Ortberg shared the company's long-term ambition to reach a production rate of 63 aircraft per month, believing that market demand will support these higher volumes. "We'd like to get someday to a 63-a-month rate, and so we're looking forward to that," Ortberg said, adding, "The market will support those higher rates."
However, Ortberg also acknowledged that significant work remains to enable further production increases. As the company looks toward reaching a 52-per-month production rate, Ortberg said that process could take at least six months, if not longer, depending on when the rate officially goes into effect, potentially in July or August. "I think the whole world's watching to make sure we make 47 and 52," he added.
