Boeing Struggles to Meet 737 MAX Production Targets
Boeing is facing challenges in stabilizing its 737 MAX production at a rate of 47 aircraft per month, according to CEO Kelly Ortberg. The company has been experiencing difficulties in building wings quickly enough to meet demand, which is expected to increase with the certification of the new 737 North Line in Everett, Washington.
Ortberg stated that the area where Boeing is constrained right now is its wing production, citing a lack of flow improvements as expected. He noted that suppliers are in good shape to support the next rate increase once those flow improvements arrive.
The 737 MAX has been slowly ramping up production after being grounded for over two years following several crashes and regulatory issues. Boeing's financial recovery heavily relies on higher output, with the company aiming to generate $2 billion in free cash flow this year, down from its previous estimate of $3 billion.