Boeing, the American airframe manufacturer, has announced plans to increase the production of its bestselling 737 narrowbody jet to a record of at least 57 per month by July 2025. This decision reflects the rising orders and the company's recovery after the 737 MAX crisis.
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The Plan
The plan was laid out in the latest version of Boeing's master schedule for suppliers, which was reaffirmed by the planemaker in mid-September. The schedule targets 737 production to reach 42 jets a month by December 2023. From there, monthly 737 production - which includes the 737 MAX as well as earlier models used for military planes - is set to grow to 47.2 jets in June 2024 and 52.5 jets in December 2024 before hitting a steady rate of 57.7 aircraft per month in July 2025.
The Context
Before the grounding of the 737 MAX in 2019, Boeing was producing 52 737s a month on its way to a target of 57. Boeing's formal 737 production target is 50 per month for the 2025-2026 timeframe, unveiled by the company last November during an investor day¹. But Boeing CEO Dave Calhoun telegraphed a rate increase to 60 jets a month could be on the table as the company racks up orders, such as a deal with Air India for almost 200 MAXs booked this year.
The Significance
This ambitious goal is an important signal to the supply chain that allows smaller companies to make necessary investments. Both Boeing and its European rival Airbus have laid out ambitious ramp-up goals as air travel and aircraft sales rebound, with Airbus producing in-demand single-aisle planes even faster than the U.S. planemaker.
In conclusion, Boeing's plan to set a record production goal for its bestselling 737 narrowbody jet by July 2025 is a testament to its recovery and resilience after the challenges faced during the 737 MAX crisis. It also reflects the company's optimism about the future of air travel and its commitment to meet rising demand.
