737 MAX production achieves a key breakthrough as Boeing Company (BA.US) plans to increase monthly production to 47 aircraft within a few months.

The Boeing Company (BA.US) has made key progress in restoring 737 MAX production capacity. CEO Kelly Ortberg stated on Wednesday that Boeing has successfully completed the crucial "final review" by the Federal Aviation Administration (FAA) for the 737 MAX production increase plan, and is expected to increase the monthly production rate to 47 aircraft in the coming months. Currently, the maximum monthly production rate for the Boeing 737 MAX is still at 42 aircraft. Analysts point out that increasing 737 MAX production is crucial for Boeing, as it not only affects the company's cash flow and debt pressure, but also directly impacts its ability to challenge Airbus for dominance in the global single-aisle aircraft market. Stimulated by the news, Boeing's stock price rose by 3.7% during trading on Wednesday. Following a near-disastrous accident involving a 737 MAX aircraft in 2024, the FAA had restricted Boeing's monthly production rate to 38 aircraft, leading to a comprehensive restructuring at the company's top levels. Since then, Boeing has been gradually ramping up production capacity. Ortberg stated that the company is steadily progressing towards the production increase goal, and expects to reach the target of 47 aircraft per month in the next few months. In addition to the progress in production capacity, the market is also highly interested in Boeing's re-entry into the Chinese market. Ortberg revealed that during his recent visit to China, Boeing secured commitments for the purchase of 200 aircraft. This marks the first large-scale purchase of American-manufactured aircraft by China in nearly a decade. Data shows that since July 2022, major Chinese airlines have ordered or committed to purchase around 700 Airbus aircraft. Additionally, China was the first country to ground the 737 MAX following two accidents, and it did not allow the aircraft to resume commercial flights until 2023, several years after the FAA approved its return to service. Analysts note that since Donald Trump returned to the White House, Boeing has regained a significant amount of international orders. Boeing aircraft purchases have become an important component of various trade agreements, including those with Saudi Arabia, Qatar, and South Korea. In addition to the recovery in production capacity and orders, Boeing also revealed that the long-delayed certification of the MAX 7 and MAX 10 models in the 737 MAX series has entered its final stage. Ortberg stated that the company has obtained full flight test authorization from the FAA, and expects no major issues in the remaining testing process. According to the company's plans, the MAX 7 and MAX 10 are expected to begin deliveries to customers next year. However, the Boeing 787 Dreamliner project is currently facing some bottlenecks. Ortberg mentioned that due to unresolved certification issues with the aircraft seats, it may take longer for the company to achieve the target of producing 10 aircraft per month for this model.