Boeing Plans to Increase 737 Max Production Amid Financial Recovery

CHICAGO, IL — Boeing is preparing to request approval from the Federal Aviation Administration (FAA) to increase production of its 737 Max jets to 42 aircraft per month, CEO Kelly Ortberg announced on Wednesday. This move comes as airplane deliveries rise and the company narrows its financial losses.

In its first-quarter earnings report, Boeing reported a net loss of $31 million, a significant improvement from a loss of $355 million during the same quarter the previous year. The company’s revenue climbed 18% to $19.5 billion, surpassing analysts’ expectations.

The improvement in cash burn was notable, with the company reporting a cash burn of about $2.3 billion, down from nearly $4 billion in the first quarter of 2024. Shares of Boeing saw a roughly 4% increase in premarket trading following the announcement.

Boeing’s results reflect only the impact of global tariffs as of March 31, which executives expect to be a main topic during the earnings call scheduled for Wednesday at 10:30 a.m. ET. The manufacturer is currently affected by President Donald Trump‘s trade war, which could increase prices for aircraft and imported components.

During the call, Ortberg is expected to address tariffs along with company performance. He stated, “While we are closely watching the developments in global trade, our strong start to the year coupled with the demand for airplanes gives us the flexibility we need to navigate this environment.”

In terms of production rates, Ortberg emphasized progress in the manufacturing processes of the 737 Max. He has faced the challenge of addressing past safety and manufacturing crises, including a recent incident where a door plug blew out during a flight due to missing bolts. Fortunately, there were no fatalities or major injuries resulting from that event.

Since the January 2024 incident, Boeing has needed FAA approval to increase production above the current rate of 38 jets per month. Production dropped significantly due to the accident and a nearly two-month union strike last year.

The commercial airplane unit saw a remarkable revenue increase of 75% year-over-year, reaching $8.1 billion, with deliveries surging to 130 planes, up from 83 a year ago. Ortberg expressed optimism in a staff memo, asserting, “We are moving in the right direction and seeing positive results in our recovery plan. There is a lot of good work happening across our teams.”

Boeing’s defense unit faced challenges, with revenue falling 9% in the first quarter to $6.3 billion. However, the company secured a crucial contract to build the U.S. Air Force’s new F-47 fighter jet, signaling positive developments in that area as well.

As part of a strategy to refocus, Boeing recently declared it would sell portions of its digital aviation business, including the Jeppesen navigation unit, for $10.55 billion in an all-cash deal to Thoma Bravo. This decision reflects Boeing’s commitment to its core businesses and recovery efforts after years of financial struggles.