Key Takeaways:
Boeing is studying raising production of its 737 jet family to 70 a month, its highest-ever rate, CEO Kelly Ortberg said.
"We're looking at how we can climb to 70 a month," Ortberg told CNBC on Friday. The company currently produces 42 of the 737 MAX jets monthly and is in the process of increasing that to 47 after receiving FAA approval in May.
The studies are at an early stage and the higher cadence may not be adopted, people familiar with the matter told the Air Current. Boeing had previously set a public target of 63 jets per month. The new target would test whether suppliers can support the accelerated pace.
The push would bring Boeing's output closer to rival Airbus's goal of 70 to 75 A320neo-family jets per month by the end of 2027. Airbus currently produces about 60 narrowbody jets monthly and holds 7,354 unfilled A320 orders, compared with Boeing's 4,872 single-aisle backlog.
The U.S. planemaker is drafting plans and assessing supplier capacity to support the higher rate, according to the Air Current report. Neither company has ever built commercial jets at the scale they are now contemplating.
"We're off and rolling at the 47 rate, and we should be there in the next couple months," Ortberg said at a conference in May.
Airbus has repeatedly pushed back its 75-jet monthly target due to supply-chain constraints, particularly Pratt & Whitney engine delays. It now expects to reach 70 to 75 per month by the end of 2027 and stabilize at 75 thereafter.
The production ramp signals Boeing's confidence in demand recovery and supply chain stability after the 2024 strike disrupted its Seattle-area factories. Investors will watch the company's next delivery update for evidence that suppliers can sustain the accelerated pace.
This article is for informational purposes only and does not constitute investment advice.
