Key insights
- Boeing aims to increase 737 production to 52 jets per month, eventually targeting 63. Supply chain challenges persist, but airlines aren't requesting delivery delays. A commitment for 200 jets from China is expected to turn into an order. This news is mildly bullish for Boeing and the aerospace sector, suggesting continued demand and production recovery.
Investing.com -- Boeing (NYSE:BA) is targeting to balance inventory at a production rate of 52 aircraft per month for its 737 program, CEO Kelly Ortberg said Wednesday at the Bernstein Conference webcast.
The company would like to eventually reach a production rate of 63 aircraft per month, Ortberg stated. Boeing recently passed a capstone review with the Federal Aviation Administration to increase 737 production and will reach a rate of 47 aircraft per month in the next few months.
The CEO said the ramp-up to 42 aircraft per month on the 737 has gone very well, and the company has completed its review to increase production to 47 per month.
Ortberg noted that supply-chain challenges will be ongoing for the manufacturer. However, Boeing has not received requests from airlines for delivery delays.
The CEO described a recent trip to China as super successful, saying a commitment for 200 jets will turn into an order. Ortberg called the China commitment a good start with more to come.
Boeing’s backlog extends well into the next decade, the CEO said.