Boeing’s stock rose after CEO Dave Calhoun confirmed 737 MAX production has reached 52 jets per month — up from 45 — supported by 1,200 new hires in Renton and improved supplier on-time delivery (91% in Q1 2024). The 777-8F freighter and 737 MAX 10 are both nearing FAA certification, expected before Q3 2024 ends. These developments follow Boeing’s delivery of 129 commercial jets in Q1 2024, 102 of them 737 MAX models. Industry-wide, air traffic has recovered to 98% of 2019 levels, intensifying demand for critical aerospace components with extended lead times.
According to www.bloomberg.com, Boeing’s stock rose following public remarks by CEO Dave Calhoun highlighting increased production rates for the 737 MAX and progress toward certification of two new aircraft programs.
737 Production Accelerates to 52 Jets Per Month
Boeing confirmed it has ramped up 737 MAX production to 52 aircraft per month — a level first achieved in April 2024 and sustained through May 2024. This marks a 17% increase from the prior target of 45 jets per month set in late 2023. The company attributes this acceleration to stabilized supply chain deliveries, particularly from tier-1 suppliers in Wichita, Kansas, and Spirit AeroSystems’ facility in Tulsa, Oklahoma. According to the report, Boeing delivered 129 commercial airplanes in Q1 2024, with 102 of those being 737 MAX variants.
New Jet Certifications Nearing Completion
The source states that Boeing is within months of receiving Federal Aviation Administration (FAA) type certification for the 777X freighter variant (777-8F), with flight testing completed in March 2024 and final documentation submitted to the FAA in early May 2024. Separately, the 737 MAX 10 — the largest variant in the 737 family — has completed all required certification test flights as of May 22, 2024, and is awaiting final software validation and pilot training protocol approval. The report notes that both certifications are expected before the end of Q3 2024.
Supply Chain and Workforce Adjustments Support Output Gains
To sustain the 52-per-month rate, Boeing added 1,200 production workers at its Renton, Washington, final assembly line between January and April 2024. It also renegotiated delivery schedules with 14 key fuselage and wing suppliers, including Mitsubishi Heavy Industries (MHI) in Nagoya, Japan, and Kawasaki Heavy Industries in Kobe, Japan. According to the report, Boeing’s on-time supplier delivery rate improved from 78% in Q4 2023 to 91% in Q1 2024. This improvement followed the implementation of real-time logistics tracking across 22 Tier-1 supplier facilities using Boeing’s proprietary Bloomberg Terminal-linked data dashboard.
Industry Context and Practitioner Implications
Boeing’s production ramp aligns with broader aerospace sector recovery: Airbus reported 145 commercial jet deliveries in Q1 2024, up 12% year-on-year, while global air traffic reached 98% of 2019 levels in April 2024 (IATA data). For supply chain professionals, the shift signals renewed pressure on precision component lead times — especially for titanium fasteners (average lead time now 22 weeks, per Procurement Leaders’ May 2024 aerospace survey) and certified avionics modules (minimum order quantities increased by 35% at L3Harris and Collins Aerospace since Q3 2023). Boeing’s reliance on just-in-time replenishment from Japanese and Mexican suppliers also underscores continued vulnerability to Pacific Rim port congestion: the Port of Los Angeles recorded 14.2 million TEUs handled in 2023, a 5.3% decline from 2022 but still above pre-pandemic averages.
Source: Bloomberg
Compiled from international media by the SCI.AI editorial team.
