Boeing Stumbles in 737 MAX Production: Shares Fall Amid Delays

Boeing's CEO Kelly Ortberg acknowledged that it's taking longer than expected to stabilize production of its popular 737 MAX aircraft, which is crucial for the company's financial recovery. The production rate has been inconsistent due to issues with wing production and certification of the new 737 line in Everett, Washington.

Ortberg stated that Boeing needs to speed up wing production and certify the 737-10 variant, which makes up about 30% of all 737 orders. He also mentioned that engine shortages are causing delays in increasing production of the 787 Dreamliner to 10 jets a month from its current rate of eight.

As a result, Boeing's free cash flow is likely to be lower than initially projected, with CEO Jay Malave predicting $2 billion instead of the previously expected $3 billion. The company's share price fell by about 4% following Ortberg's comments.