Boeing Co (NYSE:BA, ETR:BCO) shares moved higher after the airplane manufacturer’s CEO Kelly Ortberg announced plans to up production of 737 MAX aircraft.
Speaking at a Bernstein conference on Thursday, Ortberg outlined a strategy to increase production from the mid-30s per month to 42 by midyear and ultimately to 47 per month by the end of 2025.
This marks a significant uptick after the Federal Aviation Authority capped production at 38 per month due to past safety concerns and production quality issues.
The production ramp up will be done "in a smart, safe way, in accordance with our safety and quality plan,” Ortberg said.
Kelly also noted that Chinese airlines are expected to resume deliveries of Boeing aircraft in June after a halt due to tariffs.
Further, Boeing plans to increase its output of the 787 Dreamliner to 7 per month.
Shares of Boeing traded up 3.2% at about $208 in the early afternoon on Thursday.