Boeing Stock Drops as CEO Warns of Delays in 737 Production
Boeing's (BA) stock price dropped by over 5% on Wednesday afternoon trading after CEO Kelly Ortberg stated that the company is taking longer than expected to stabilize production of its 737 aircraft at a rate of 47 planes per month. This comes as Boeing works towards achieving a stable production pace, with wing production being the current constraint.
Ortberg mentioned that stabilizing production has taken longer than anticipated, but expressed confidence in addressing the remaining issues by next year. He also stated that the supply chain is in good shape and that the company is well-equipped to handle increased production once the issues are resolved.
Boeing maintained its plan for delivering 777X aircraft in 2027 and confirmed that certification of the 737 MAX 10 is 'coming very shortly.' The company also stated that it is working on addressing potential charges in its defense business, although some programs remain at risk of significant cost increases.