Boeing's Production Recovery Plan Hits Snag Amid Certification Delays

Boeing's recovery plan is facing another delay due to production bottlenecks affecting both aircraft deliveries and the company's financial targets. According to CEO Kelly Ortberg, Boeing needs more time than expected to stabilize 737 MAX production at the target rate of 47 aircraft per month.

The company aims to increase output to 52 aircraft per month next year, but is struggling with inconsistent wing production, which is a crucial step in meeting this goal. The CEO said that certification of the largest 737 MAX variant, the 737-10, would take place 'very soon', accounting for about 30% of all 737 orders.

Boeing also faces challenges with producing the wide-body Boeing 787 Dreamliner, which is expected to be increased to 10 aircraft per month. However, this ramp-up will likely prevent the company from achieving $3 billion in free cash flow, instead generating around $2 billion.