Boeing CEO Warns of Delays in Increasing 737 Max Production
Boeing CEO Kelly Ortberg stated that stabilizing the production rate for its 737 Max at 47 jets per month is taking longer than expected, primarily due to bottlenecks in wing manufacturing. This delay has caused Boeing's stock price to drop by 4% following his remarks during a Morgan Stanley conference. Ortberg also highlighted that hitting the next production target of 52 aircraft monthly will require resolving issues at its Renton factory and obtaining certification for an additional line in Everett, Washington. The slower ramp-up affects both the 737 Max and the 787 Dreamliner programs, with free cash flow expected to fall short of initial projections due to these production constraints. Additionally, engine shortages are slowing the increase in 787 output from eight to ten jets per month. Certification delays for premium seats have also impacted deliveries. Ortberg downplayed expectations around a potential Chinese jet order during President Trump's meeting with China’s leader.
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Topics: 737 Max production delay Boeing certification delays free cash flow guidance