FAA approves higher 737 Max production rate
The Federal Aviation Administration has cleared Boeing to ramp up production of its 737 Max jets to 42 aircraft per month, a milestone in the company’s long road back from a tightly restricted output schedule. The move comes nearly two years after the FAA capped output in response to a midair safety incident involving a door plug on a new 737 Max 9, which briefly raised concerns about Boeing’s manufacturing controls.
What prompted the cap and why the increase matters
In January 2024, the FAA restricted Boeing to a production rate of no more than 38 Max jets per month after a door plug from a newly built 737 Max 9 separated from an Alaska Airlines flight during climb-out from Portland. A National Transportation Safety Board investigation found that key bolts reconnecting the door plug had not been reinstalled at the factory. The incident halted deliveries and put the company back in crisis mode as it sought to regain customer confidence and stabilize its supply chain.
Raising the cap to 42 per month indicates the FAA’s confidence that Boeing has addressed the safety and quality-control issues that triggered the previous restriction. The agency stressed that inspections and oversight remain in place to ensure that the higher rate is sustainable without compromising safety.
How Boeing plans to manage the increase
Boeing said it would coordinate with its suppliers and manufacturing partners to lift output while keeping safety and quality at the forefront. CEO Kelly Ortberg has signaled that the company intends to push beyond 42 jets per month in the near term, with plans to advance in steps as the supply chain and production lines adapt to higher volumes. The goal, as outlined by company executives, is to rebalance inventories with demand, reduce backlogs, and accelerate deliveries to customers who place a premium on on-time handovers.
Regulatory stance and industry impact
The FAA’s decision reflects a softer regulatory posture toward Boeing after years of restrictive oversight tied to the 2018–2019 MAX crashes. In addition to increasing the production cap, the agency recently allowed Boeing to perform more sign-offs on aircraft before handover, a shift that reduces some workload from FAA inspectors and aims to streamline deliveries while maintaining safety standards.
Analysts say the higher production rate could support Boeing’s broader recovery, including improving cash flow and turning around a long period without annual profitability. But the company faces ongoing challenges, including supply-chain constraints, labor negotiations, and the need to maintain a steady cadence of profitable deliveries as airlines recover post-pandemic demand cycles.
Looking ahead
With quarterly results due later this month, investors will be watching for updates on production efficiency, order backlogs, and the pace at which Boeing can continue expanding output. If the 42-per-month rate proves sustainable, Boeing could set the stage for further increases, potentially toward the mid-40s range, as supply chains normalize and the company works toward a balanced inventory-to-delivery profile.
As regulators and the market reset, Boeing remains focused on delivering safe, high-quality aircraft that meet airline needs. The next few quarters could mark a turning point in the company’s long battle to restore credibility and profitability in a highly competitive aviation market.
