Boeing delays 737 production target to early 2027
Boeing CEO Kelly Ortberg said on Tuesday that the company will not reach its 737 production rate target of 47 jets a month until next year, a serious setback to the company's ongoing recovery. The company had planned to reach the target this past summer, but it will take "into early next year," Ortberg said during an interview on CNBC. In September, he said that Boeing has not been able to make…
Boeing has pushed back its target for 737 production to early 2027, a major setback to the company's recovery efforts. The original plan was to hit the 47 jets per month target this summer, but CEO Kelly Ortberg revealed the delay during a CNBC interview. The issue stems from Boeing's inability to produce wings quickly enough. The popular single-aisle jetliner's deliveries are crucial to Boeing's cash flow.
Despite recent achievements such as securing certification for the 737 MAX 7 and winning a significant US Navy contract, shares of the US company dropped 2.5 percent in premarket trading. Ortberg acknowledged the need to strengthen the company's culture and deliver on its backlog while improving daily operations. Boeing's commercial airplanes division reported an adjusted loss of 34 cents per share for the quarter, falling short of market expectations.
The company's defense division reported nearly $500 million in earnings, while Global Services generated $1 billion. As of the latest quarter, Boeing held $25.2 billion in net debt, a slight improvement from the previous quarter and a year ago.
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