Boeing has resumed production of its best-selling 737 MAX jetliner, according to media reports citing sources. This comes after the company’s union initiated its first strike in 16 years in mid-September, which lasted nearly eight weeks and led to a halt in production of some of the company’s most popular aircraft.
FAA Administrator Mike Whitaker stated in a media interview last Thursday that Boeing had not yet resumed 737 MAX production but planned to restart it later this month. However, insiders revealed that production resumed last Friday.
The resumption of the 737 MAX production line is crucial for Boeing, which has received approximately 4,200 orders for the aircraft from major airlines eager to return to pre-pandemic levels. Boeing has faced numerous setbacks in recent years, including two air disasters, the COVID-19 pandemic, supply chain issues, production safety concerns, increased regulatory scrutiny, and the recent strike.
In January of this year, an Alaska Airlines Boeing 737 MAX 9 experienced a cabin door detachment shortly after takeoff, which once again put Boeing in the spotlight. Following the incident, the FAA capped the monthly production of 737 MAX at 38 units. Whitaker believes it may take Boeing several months to ramp up production to near this cap.
Jefferies analysts stated in a report to clients last Sunday that they expect Boeing’s average monthly 737 MAX production to reach 29 units next year. According to previously released financial reports, Boeing recorded its largest quarterly loss since 2020 in Q3, when the COVID-19 pandemic brought air travel to a standstill. The financial report showed that Boeing’s Q3 revenue was $17.8 billion, with a net loss of $9.97 per share.
