Market Commentary

Boeing Adjusts Production Timeline for its 737 Jetliner

Jahanzeb Salam
8 Dec 2023 · 1 minute read

A significant player in the aircraft industry Boeing (BA:US), recently communicated to its suppliers a revised timeline for the production increase of its popular 737 narrowbody jetliner. This adjustment, disclosed by informed sources, indicates a slower ramp-up by nearly two months compared to the initial projections.

Both Boeing and its European competitor Airbus (EADSY:US) have outlined ambitious production plans, particularly for popular single-aisle models, in response to growing customer demand. However, challenges such as supply chain bottlenecks and production disruptions have been encountered by both aircraft manufacturers.

The U.S. aviation company now foresees reaching a production rate of 42 737s per month starting in February 2024, as per a newly presented master schedule to suppliers during the past week. Additionally, it anticipates achieving its pre-pandemic target of 57.7 aircraft per month in October 2025, a delay of three months from the initial projection of July 2025.

A spokesperson reiterated the company's commitment, stating, "We still plan to increase to 50 airplanes per month in the 2025/2026 timeframe," reaffirming one of the publicly acknowledged targets.

The aircraft manufacturers' stock currently trades more than 21% higher in value from the start of 2023. On the congressional trading front, Representative Bill Keating acquired nearly $50,000 worth of the company’s corporate bonds on September 15.