Boeing has received the Federal Aviation Administration (FAA) approval to increase production of its 737 Max aircraft to 42 planes per month, marking a significant milestone for the company nearly two years after output was restricted following a serious incident. The FAA had capped Boeing’s production at 38 units monthly in January 2024 after a door plug detached from an Alaska Airlines flight shortly after takeoff from Portland, Oregon. An investigation by the National Transportation Safety Board revealed that critical bolts were not reinstalled before the aircraft left the factory. Although the plane returned safely, the episode thrust Boeing back into crisis mode just as it was poised for a resurgence.
In a recent statement, the FAA confirmed that it will continue to oversee Boeing’s production processes. “FAA safety inspectors conducted extensive reviews of Boeing’s production lines to ensure that this small production rate increase will be done safely,” the agency said. Boeing expressed gratitude for the collaborative efforts among its team, suppliers, and the FAA in prioritizing safety and quality as they ramp up production.
Increasing the output is crucial for Boeing’s recovery after years of challenges, as airlines typically pay for the bulk of an aircraft upon delivery. CEO Kelly Ortberg, who took the helm last year with the mandate to stabilize the company, indicated that he anticipates further increments in production. “We’ll go from 42 and then we’ll go up another five, and we’ll go up another five,” Ortberg noted during a Morgan Stanley investor conference, projecting a future target of 47 units per month to balance inventory with supply chain capabilities.
This production increase demonstrates a positive shift in the FAA’s approach toward Boeing, reflecting renewed confidence in the manufacturer after years of stringent oversight. Last month, the agency also allowed Boeing to resume signing off on certain aircraft before delivery, a responsibility that had previously rested solely with the FAA.
The 737 Max program faced a severe setback following two tragic crashes in 2018 and 2019 that led to the loss of all 346 lives on board. The aircraft was grounded for nearly two years, compounding Boeing’s existing production woes, which were further exacerbated by the COVID-19 pandemic, supply chain disruptions, and a labor strike at its primary factories in the Seattle area. Consequently, the company has not reported an annual profit since 2018, but recent output increases and projected deliveries indicate it could reach its highest rate since that year.
Boeing is set to release its quarterly results on October 29, offering further insights into its recovery trajectory. The aviation industry remains attentive to these developments, as they not only affect Boeing’s financial health but also the broader market dynamics for airlines and aircraft manufacturers. With this latest approval, Boeing is positioning itself to regain ground in a competitive industry that continues to evolve.
Original Source: https://www.cnbc.com/2025/10/17/boeing-737-max-production.html
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Publish Date: 2025-10-18 02:31:00
