Commercial Aviation
FAA & Boeing To Engage In 'Scenario-Based Planning' Before Considering 737 Production Rate Increase
The Federal Aviation Administration ( FAA) will conduct scenario-based planning, known as tabletop exercises, with 
Boeing 737 MAX production has been capped at 38 units per month since last year, following a January 2024 incident where a door plug blew off a brand-new Alaska Airlines 737-9. Boeing has made strides to improve quality and safety since then, and the FAA aims to ensure the manufacturer can maintain its progress.
Considering The Risks Of Increasing Production
According to Reuters, the tabletop exercises are expected to be completed by the end of September and aim to analyze the potential challenges Boeing may face in increasing production of the popular narrowbody. However, Boeing has not yet approached the FAA to ask it to lift the cap, and the regulator has not agreed to do anything yet.
However, the FAA and Boeing are developing a process to evaluate any future requests to increase production, so when the request comes, a roadmap will be in place. Since the Alaska Airlines incident, Boeing has been tasked with making safety and quality enhancements at its Renton, Washington, facility. Boeing has seen production and deliveries steadily increasing this year, signaling a positive turnaround for the company.
Speaking at an event at Philadelphia International Airport (PHL), FAA Administrator Bryan Bedford said,
“They still haven’t asked us to increase the rate, and we haven’t agreed to do anything. We agreed that it would make sense to start to develop the process by which we would entertain a rate increase conversation.”
Increasing Production To 42 Aircraft
Bedford toured Boeing’s Renton facility on August 15 and met CEO Kelly Ortberg to review initiatives aimed at stabilizing the supply chain and addressing aircraft production. The administrator praised the company’s progress but warned that there are still existing issues, including “traveled work,” where tasks are completed later than originally planned.
In May, Ortberg stated that he remained “pretty confident” that Boeing could increase MAX production to 42 aircraft per month. He added that the manufacturer was working with the FAA to potentially reach a production rate of 47 aircraft per month by the end of the year. The priority has been to stabilize production at 38 units per month and prove to the FAA that it can maintain that higher level before asking the agency to lift the cap.
On August 27, Reuters reported that Ryanair expects the manufacturer to increase production to 42 units per month by October, according to the airline’s CEO, Michael O’Leary. The comments came after O’Leary spoke to Boeing Commercial Airplanes CEO Stephanie Pope. Increased production will be a major boost for Boeing as it aims to meet the growing demand and shortage of commercial aircraft globally.
Steadying Up Production And Deliveries
Boeing has seen significant progress in MAX production over the last 18 months. The company had a very strong Q2, with 737 production reaching 38 per month in the quarter. Deliveries have also increased, signaling a positive trend for the company. Deliveries are particularly important for OEMs as they trigger revenue. As such, Boeing’s financial recovery also hinges on restoring delivery volumes to levels that meaningfully convert the backlog into cash flow.
In June, Boeing delivered 60 aircraft, the most since December 2023. This included 42 737 MAXs, nine 787s, five 767s, and four 777s. The company ended the quarter with 150 commercial deliveries, making it its best Q2 performance since 2018. Last month, the manufacturer delivered 48 aircraft. While this was a 20% decrease from June, it was the most aircraft Boeing has delivered in July since 2017.
- Stock Code
-
BA
- Business Type
-
Planemaker
- Date Founded
-
July 15, 1916
- CEO
-
Kelly Ortberg
Throughout the year, Boeing has averaged 40 to 45 deliveries per month, with June as an outstanding month. Boeing does not currently have a delivery target for 2025 as its focus is on stabilizing production and improving safety and quality. Meanwhile, European manufacturer Airbus continues to have an edge on Boeing, with more monthly deliveries. Airbus aims to deliver 820 aircraft in 2025 but will need to increase production in the coming months to meet this target.