Boeing CEO Confirms Study to Boost 737 MAX Production to Record 70 Jets/Month
Summary
Boeing is studying a plan to increase 737 MAX production to a record 70 jets per month, a target confirmed by CEO Kelly Ortberg. This follows recent strong aircraft orders, including a 200-jet purchase from China, and the acquisition of key supplier Spirit AeroSystems. This significant ramp-up is crucial for Boeing's financial recovery, allowing it to meet high demand and improve cash flow after substantial past losses and debt. The target of 70 jets/month is a material increase from the current 42-47 and the previously stated goal of 63. The company will assess supply chain resilience, and Boeing plans to load the first plane on its new Everett 737 production line on July 6, a step towards reaching 52 jets/month.
At the time of this announcement, BA was trading at $214.75 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $169.8B. The 52-week trading range was $176.77 to $254.35. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.