Boeing Plans to Raise Monthly 737 MAX Production

Boeing to Increase 737 MAX Production Amid Regulatory and Market Challenges

Boeing has announced plans to raise the monthly production rate of its 737 MAX aircraft family, signaling a strategic effort to accelerate output following a period marked by regulatory scrutiny and operational difficulties. Currently, the company manufactures 38 units per month, a limit imposed by the Federal Aviation Administration (FAA) after the January 2024 incident involving an Alaska Airlines 737 MAX 9 plug door failure. This event intensified oversight and brought to light safety shortcomings within Boeing’s production processes.

Production Targets and Regulatory Collaboration

At a U.S. industry conference on May 29, 2025, Boeing CEO Kelly Ortberg outlined the company’s intention to increase production to 42 aircraft per month in the near term. While stabilizing the current production rate remains a priority, Boeing is actively collaborating with U.S. regulators to achieve a further increase to 47 units per month by the end of 2025. Ortberg explained that future rate hikes will typically occur in increments of five aircraft, spaced at least six months apart. These increases will encompass the entire 737 MAX range, including the MAX 7, MAX 8, and MAX 10 models.

Strategic Importance and Financial Implications

The planned production ramp-up is critical for Boeing on multiple fronts. The company faces a substantial backlog of orders, necessitating faster deliveries to meet customer commitments and avoid penalties associated with late shipments. Additionally, boosting output is vital for Boeing’s financial recovery. The firm expended $2.3 billion from its cash reserves in the first quarter of 2025, a level of loss that analysts warn is unsustainable if prolonged. Ortberg emphasized the link between production and financial performance, stating, “I think the financial performance will follow the production performance, and I think we need to think about it that way.”

Challenges and Market Response

Despite the ambitious production goals, Boeing confronts significant obstacles. Supply chain disruptions, ongoing regulatory challenges, and the inherent complexity of scaling production to 47 aircraft per month present considerable risks to the timeline. Nonetheless, the market responded positively to Ortberg’s announcement, with Boeing’s share price rising by 5%. Analysts noted that Boeing’s proactive management of tariff risks and efforts to mitigate supply chain issues could help the company sustain its competitive position amid close scrutiny from rival manufacturers.

Addressing concerns related to previous quality issues, Ortberg reported a 30% reduction in production defects within the 737 MAX program. He added that “virtually every one of our customers is reporting a higher quality of airplane at delivery,” underscoring improvements in manufacturing standards.

As Boeing endeavors to rebuild regulatory confidence and strengthen its financial standing, the company’s success in executing this production increase will be closely monitored by customers, investors, and competitors worldwide.