Boeing boosts monthly 737 production as results beat estimates

Boeing is lifting production of its bestselling 737 narrow-body jet, but executives said Wednesday that it will take time for its facilities to stabilize production, even as they set their sights on future rate boosts. Shares of the company rose 7%, at one point hitting a 1-1/2-year high after Boeing also posted second-quarter results above Wall Street expectations. The planemaker is now transitioning its 737 production line - including the MAX models that make up the vast majority of 737 production - to building 38 jets per month, up from 31, the company said. "That's a big important move, and there'll be subsequent rate breaks beyond that," said CEO Dave Calhoun. "All of that is going to play into a margin trajectory that's going to start to look a lot more normal." Calhoun later added the company is already in "prep mode" to raise monthly 737 production to 42, but wouldn't specify whether Boeing would do so in 2023, as Boeing Commercial Airplanes head Stan Deal told Bloomberg TV in June. And while Calhoun said he would "love" to ramp up 737 production from its stated monthly target of 50 to 60 jets, Boeing needs to ensure production lines remain stable as rate increases in 2024. Boeing has signaled to suppliers that it will lift 737 production to 47 a month in June 2024, Reuters previously reported. While analysts pressed Boeing executives on production increases, Calhoun warned that continued supply chain constraints could persist for the foreseeable future, stating that, "Everyone is fighting for the next part."<br/>