FILE PHOTO: A Boeing logo is seen before the opening of the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 13, 2025. REUTERS/Benoit Tessier/File Photo
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Boeing Co.’s Chief Executive Officer gave investors an optimistic forecast for this year and beyond, as the US planemaker raises production on its workhorse 737 Max jet, nears certification on long-delayed models and expects a windfall from defense spending.The planemaker has successfully completed a so-called capstone review with the Federal Aviation Administration to further increase production of the 737 Max to 47-jet monthly output, a key step to improve profitability and generate cash, Kelly Ortberg said at the Bernstein Strategic Decisions Conference on Wednesday. “FAA supports Boeing’s production rate increase from 42 to 47 aircraft per month,” the agency said in a statement Wednesday. “FAA safety inspectors conducted extensive reviews of Boeing’s production lines to ensure this production rate increase will be done safely.”The company is in the final flight testing stages for the 737 Max 7 and 10 variants, and the intercontinental 777X model, Ortberg said. Still, the certification of seats and the supplies of engines from GE Aerospace for the 787 Dreamliner are bottlenecks that are delaying deliveries and could push back plans to ramp up that model. Boeing shares rose as much as 3.7% after the CEO’s comments, and were trading about 2% higher as of 11:11 a.m. New York time. The stock had gained roughly 3% this year, compared to a 6% increase for the Dow Jones Industrial Average. The company has been steadily increasing output of the 737 Max after the FAA capped monthly production at 38 a month in 2024, following a near-catastrophic accident that led to a wholesale switch of senior leadership. Speeding up 737 Max production is crucial for Boeing to pay down debt, improve its finances and challenge Airbus SE’s dominance in the single-aisle aircraft segment.Ortberg also discussed his recent trip to China, where Boeing secured a purchase commitment for 200 aircraft. While the order was smaller than investors expected, Ortberg said it was a “major accomplishment.”“My primary objective was to reopen that market to our narrowbody airplanes. As you know, we hadn’t had an order in nearly a decade,” Ortberg said. “It’s a good start. And there’ll be more to come.”China typically orders jets from Boeing and Airbus in bulk and then distributes them among the state-owned carriers. Boeing has failed to win a major order since President Donald Trump last visited the country in 2017. China was also the first country to ground the Max after two fatal crashes and didn’t allow it to resume flying until 2023, years after the FAA allowed the model back into the skies. Since July 2022, major Chinese airlines have ordered or committed to about 700 Airbus jets, including a 137-plane purchase by China Southern Airlines Co. and one of its subsidiaries announced in April. Since Trump’s return to the White House, Boeing has won a flurry of orders, with such purchases featuring prominently in trade agreements with countries such as Saudi Arabia, Qatar and South Korea. Boeing expects the outlook for growth at its Defense unit to be “stronger this year than what I would have said it was last year,” Ortberg said referring to Trump’s plan to ramp up the Department of Defense’s budget to $1.5 trillion. The company is also in talks to help replenish depleted weapons stockpiles, the CEO said, amid the ongoing war in Iran.More stories like this are available on bloomberg.comPublished on May 28, 2026
