Boeing's 737 MAX Production Faces New Delays: Report

Boeing Company BA reportedly informed suppliers of a six-month delay in a key production milestone for its 737 MAX.

The new target is to reach a monthly output of 42 jets by March 2025, compared to the previous goal of September 2024, signaling challenges in ramping up production of its best-selling aircraft, reported Reuters.

As per the report, while the master schedule serves as a demand signal, it is not an official production target.

In July, CFO Brian West told Reuters, “On the master schedule, we continue to make adjustments as needed and manage supplier by supplier based on inventory levels.”

“Our objective remains to keep the supply chain paced ahead of final assembly to support stability.”

The mid-air incident in January, involving a door panel blowing off, has had a domino effect on all aspects of the aviation industry.

In August, Boeing announced plans to implement design changes aimed at preventing future mid-air cabin panel blowouts.

Notably, Boeing stated earlier that the 737 programs gradually increased production in the second quarter and planned to increase production to 38 per month by year-end.

Recently, a tentative labor agreement between Boeing and one of its largest unions has left many workers dissatisfied ahead of a crucial vote.

Jon Holden, president of IAM District 751 and lead negotiator, noted that workers are frustrated, seeking higher wage increases and improved pensions. Union members will vote on the deal Thursday, with the possibility of a strike still looming.

Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ITA and Gabelli Commercial Aerospace and Defense ETF GCAD.

Price Action: BA shares are down 0.26% at $162.49 premarket at the last check Tuesday.

Photo via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.