DANA POINT, Calif. – Wing construction constraints are preventing an increase in Boeing 737 production, indicating the jet maker will miss output targets previously announced for the 2026 calendar year, according to CEO Kelly Ortberg.
Ortberg asserted that Boeing has a plan in place to improve wing construction rates next year, which in turn will boost completed 737 plane production.
Ortberg spoke of the production metrics, “The supply chain is in really good shape. The area we’re constrained right now is in our wings production. We actually produce all the wings in Renton for the MAX line and we just have not seen the flow improvements that we expected in the time frame. So, it’s taking us a little bit longer. Having said that, we’ve got plans in place to go address that and move to the next rate.”
Ortberg’s comments were made at the 14th annual Morgan Stanley Laguna Conference.
Ortberg told the conference, 737 production is currently pegged at 47 planes a month, “but we are not stable yet, at 47 a month. That’s been our task here to get stable. I’d say that’s probably taken us a little bit longer than what I had anticipated. I think we’re in pretty good shape from a supply chain (stand-point) to actually move to the next rate once we get some of these flow enablers behind us and that’ll happen next year.”
Expanding that production rate, Ortberg said, “Look, in terms of supply chain constraints again on MAX, I’m not so worried about at least our near-term constraints. Now, once we get to 52 (737s a month) and 57, that’s when you’re going to see the supply chain more aligned with us relative to inventories.” Boeing had previously targeted the 52-plane monthly production rate by the end of 2026.
The last time Boeing produced 52 737s a month was before the MAX crisis of 2018-2019 involving two fatal plane crashes.
“To go to 52, we need to see stability out of our wing shop,” Ortberg underscored about monthly production. “The other thing that’s important is we’ve just turned on the North Line in Everett for 737 MAX. This is a new production line that we’re going to build four airplanes here initially to certify the line. And we need to have that line producing to go to rate 52. So, think about stabilizing at rate 47 in Renton, getting that Northline certified and producing, and once we’ve accomplished those two things, we’ll be ready to move to rate 52.”
In August, Boeing assembled 41 737 Max jets, two fewer than the July, according to Cirium production data.