Boeing (NYSE:BA) saw its stock climb 4% following CEO Kelly Ortberg’s announcement of an ambitious plan to scale up production of the company’s popular 737 MAX aircraft. The move signals renewed confidence in Boeing’s recovery efforts and manufacturing capabilities.
Speaking at the Bernstein investor conference on Thursday, Ortberg outlined the strategy to increase monthly production of the 737 MAX from the current mid-30s to 42 units by midyear, with a further rise to 47 per month by year-end. This would represent a substantial rebound from earlier constraints placed on the company due to regulatory scrutiny.
In 2024, the Federal Aviation Administration (FAA) had imposed a cap of 38 planes per month after a midair incident raised alarms about safety and quality control. The new production roadmap suggests Boeing is regaining regulatory trust and operational momentum.
Adding to the optimistic outlook, Ortberg confirmed that Chinese airlines are set to resume Boeing aircraft deliveries starting in June, following a pause in April linked to trade tensions and past tariff policies. The resumption of deliveries could mark a thaw in U.S.-China trade relations and bolster Boeing’s international sales pipeline.
The renewed production targets are a major step for Boeing, particularly given the turbulent history of the 737 MAX program, which suffered global groundings after two fatal crashes. Achieving these output levels could be crucial to restoring the company’s reputation and strengthening its financial position.
Ortberg also shared that Boeing intends to increase 787 Dreamliner output to 7 aircraft per month, as part of a broader strategy to scale up operations and tap into growing demand across global markets.