Boeing plans to ramp up 737 Max production after significant delays

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Transport Reporter

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A former Boeing employee who exposed safety problems at the company has been found dead in the United States.
A former employee of Boeing who blew the whistle on safety problems at the company has been found dead.

US plane-maker Boeing today announced plans to ramp up production of its 737 Max planes after manufacturing issues led to significant delivery delays.

There had been major concerns that the manufacturer would not be able to meet its annual target of making at least 400 737 planes, but the firm said today that now hopes to produce 38 planes per month and deliver 400-450 aeroplanes this year.

The group did caution, however, that near-term deliveries and production on its 737 program will continue to be impacted.

In its quarterly statement, it also reported a 28 per cent increase in revenue on the same period last year.

“We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term,” Dave Calhoun, Boeing President and Chief Executive Officer, said.

“Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future,” he added.

Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown, described the first quarter performance as a “mixed bag” but stated that “it was a relief to hear that it plans to accelerate output of its 737 jets later this year, saying that a recently discovered manufacturing defect wouldn’t dent its delivery targets.”

“Of course, where the 737 is concerned, it’s not just deliveries, but cash that matters.This aircraft has been highly cash-lucrative and is an important area for the group to focus on.”

Lund-Yates added: “There should be an expectation that the group won’t be flying at full altitude for at least the next few months.”

Boeing shares were up nearly 3 per cent at the time of reporting. 

The results come just weeks after data revealed that Boeing had delivered more planes than its bitter rival Airbus, for the first time since 2018.

Airbus will report its first quarterly results on Wednesday 3 May, having recently seen a record $4.2 billion net profit for its 2022 full year results.