Boeing Reportedly Tells Suppliers Of Delay In 737 Production Ramp-Up

Shares of Boeing fell during the late morning cash session in the US following a Reuters report detailing how a new master schedule, recently presented to its suppliers, indicates a production slowdown for the company's bestselling 737 narrowbody jetliner.

Reuter sources said Boeing now expects monthly production totals of 42 737s beginning in February 2024. The initial estimate of 42 was expected to be reached this fall, but a supplier error slowed the ramp-up phase. 

The monthly production rate for 47.2 jets per month was pushed out from June to August 204. The target for 52.5 jets a month was moved from December 2024 to February 2025. It now expects the pre-pandemic level of 57.7 jets to be reached in October 2025, a delay of about three months. 

A Boeing spokesperson did not confirm the new master schedule but offered this comment: 

"We still plan to increase to 50 airplanes per month in the 2025/2026 timeframe." 

Boeing shares fell 1% in the session following the report. 

Shares remain nearly halved from 2018/19 levels when two 737 MAX jets crashed (in two separate incidents), killing 346 people. 

CEO Dave Calhoun's monthly production rate target of 38 jets by the end of the year in October was widely off.