Boeing supply chain snarls 737 MAX production, deliveries

Supply-chain snags led Boeing to recently pause 737 MAX production for about 10 days, people familiar with the matter said, complicating the plane maker's ability to satisfy airlines' demand for new aircraft. Boeing's problems with delivering new narrow-body jets have frustrated customers such as Ryanair Holdings PLC as carriers seek to capitalize on surging air travel demand, and hindered the plane maker's efforts to generate cash to pay down debt. Boeing is expected to burn through around $3.6b in cash during the first half of 2022, according to analysts' estimates, though the company forecasts it can have positive cash flow for the year. That outlook hinges in large part on the number of MAX deliveries and the resumption of 787 Dreamliner deliveries. Boeing's recent 737 production pause occurred in May, people familiar with the matter said. Work inside the factory didn't halt during the slowdown, one of these people said. CEO David Calhoun said supply constraints have kept Boeing from increasing production and delivering more 737s. "It's a relatively hot market," he said at an investor event Friday. "Right now, demand is significantly better than supply."<br/>