Report: Boeing signals two-month delay to 737 production ramp-up

Boeing is adjusting its production plans for the popular 737 narrow-body jetliner, signaling a two-month delay, according to a Reuters report. The U.S. plane manufacturer now anticipates producing 42 of its 737s per month starting in February 2024, shifting from the initial target set for the end of 2023. This adjustment comes as Boeing and its European counterpart, Airbus, grapple with challenges in meeting escalating customer demand due to supply chain bottlenecks and production disruptions.

While Boeing has not commented specifically on the new master schedule, the company reaffirms its commitment to increasing production to 50 airplanes per month in the 2025-26 timeframe. The updated schedule also affects subsequent rate increases, pushing Boeing’s plan for 47.2 jets a month from June to August 2024, and the target to increase 737 productions to 52.5 jets a month moved from December 2024 to February 2025.

Boeing now expects to achieve its pre-pandemic goal of 57.7 aircraft per month in October 2025, reflecting a three-month delay from the original target of July 2025. Despite these adjustments, the company emphasizes its confidence in meeting production goals and satisfying customer demand. Investors reportedly view the move to 42 jets a month in February as “good news,” according to Deutsche Bank.

Boeing’s CEO, Dave Calhoun, has previously underscored the company’s intention to increase production levels, stating that Boeing is positioned to manufacture 60 737s a month. However, the recent adjustments highlight the challenges posed by supply chain complexities. Calhoun acknowledges the importance of ensuring planned rate increases can navigate through the supply chain effectively. The 737 master schedule, a crucial component of the global supply chain, offers insights into the industry’s confidence and drumbeat, even though it may evolve due to various factors.

This development follows a supplier error discovered in August, prompting Boeing to conduct time-consuming inspections of some of the 737 MAXs on its production line, contributing to the slowdown. Despite the challenges, Boeing remains resolute in its commitment to ramping up production, having previously announced an increase from 31 to 38 jets per month in July.