TURNAROUND? Boeing CEO says company is ‘pretty confident’ it is ready to increase 737 MAX output.
Boeing is currently trying to stabilize production at 38 per month, where it was capped by the U.S. Federal Aviation Administration in 2024 after a midair accident put the planemaker’s safety and production quality program under new scrutiny.
After the FAA approves Boeing increasing output to 42 a month, “we do have subsequent rate increases in our plan,” which will typically be in increments of five aircraft a month and at least six months apart, he said.
Ortberg has previously stressed that production must be stable before any rate increase.
Production defects on the 737 program are down by 30%, Ortberg said. “Virtually every one of our customers is reporting a higher quality of airplane at delivery.”
Increasing production is critical in getting Boeing back to being cash positive, which Ortberg has previously said he expects to achieve in the second half of the year. The company burned through $2.3 billion in cash during the first quarter.
“I think the financial performance will follow the production performance … and I think we need to think about it that way,” Ortberg said.
Focus on the quality and the profits will follow.
