Boeing (NYSE:BA) shares rose 1.7% in premarket trading on Monday after the Federal Aviation Administration (FAA) approved a production rate increase for the company’s 737 MAX aircraft.
The regulator gave Boeing the go-ahead to lift monthly output from 38 to 42 aircraft, a move that aligns with analyst projections that the company would hit this milestone by year-end.
The approval follows consistent signals from Boeing’s leadership, including CEO Kelly Ortberg, who previously indicated the company was on track to secure this clearance. A key performance milestone tied to rework reduction was reportedly completed in September, clearing the final hurdle to the production ramp-up.
With the FAA’s authorization in place, Boeing is now set to execute further increases, with production expected to reach 47 aircraft per month in 2026, followed by 52 and then 57 units at later intervals. Ortberg has outlined a plan that envisions stepping up production in six-month increments.
This boost for the 737 MAX mirrors the recent ramp-up for Boeing’s 787 Dreamliner program, which has already reached 7 aircraft per month and is on track to climb to 10 per month by 2026.
Bernstein analysts commented: “The rate increase for the MAX follows the previous rate increase for the 787 to 7/month, with plans to reach 10/month in 2026. Historically, we have found that Boeing’s stock performance is tied to production ramps, which are now fully underway on the two programs that matter most.”
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