Boeing Co plans to increase the rate production of its 737 MAX above its current output of 31 jets per month “very soon,” the company announced Thursday.
The airplane producer plans to increase monthly MAX production to 50 planes per month by the end of 2026, while ramping 787 production to 10 aircraft per month during the same period.
Boeing is also working on a new 737 MAX 7 model, for which it is in the process of completing final submissions for Federal Aviation Administration certification, according to CEO Stan Deal.
"We've got a handful - less than a handful - left to go to the FAA," Deal told reporters. "We're working a few issues around those submittals. I want them to be perfect, I want the FAA to feel comfortable, and then give them the time to go review."
Last week, chief financial officer Brian West also expressed Boeing's expectation that the MAX 7 will complete certification this year, which would allow for the first delivery this year as well.
Boeing shares closed 1.5% higher Thursday following the news and are up another 0.6% Friday morning.
Broadly speaking, supply chain headwinds have been a problem for the production of multiple Boeing models. The company continues to grapple with supply chain headaches as it pushes to ramp up production of the bestselling MAX narrowbody jet as well as its widebody 787 Dreamliner from less than three jets to five jets per month by the end of 2023.
On Thursday, Deal said the situation is "getting better" but that aerospace companies are still working to train new hires to deal with the influx of post-pandemic aircraft orders.
“We’ve got a couple of suppliers we’re working with,” Deal said. “We’re making sure our factory is stable, but you will see that [rate] turn up this year.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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