Boeing CEO Warns of Delays in Increasing 737 Max Production
Boeing CEO Kelly Ortberg warned investors at Morgan Stanley's Laguna Conference that the company is not yet stable at its current production rate of 47 737 Max jets per month and has faced delays in ramping up to a target of 52. The bottleneck lies specifically with wing production, which remains constrained despite broader supply chain improvements. Ortberg noted this delay could push back higher production rates into next year. The issue is critical for Boeing's financial recovery plan, as increased jet deliveries are essential to achieving $10 billion in free cash flow and meeting long-term production targets of 57 or even 63 planes per month. While engine supply from CFM remains stable at current levels, the company also faces a potential strike threat with its engineering union SPEEA, whose contract expires on October 6. Boeing has made progress this year, including regaining FAA certification authority and delivering record numbers of aircraft in Q2. However, Ortberg's comments highlight how fragile Boeing’s recovery remains as it navigates production bottlenecks and labor risks.
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Topics: 737 Max production delays Boeing CEO statement supply chain issues