Boeing is preparing to increase production volumes of its most popular model - narrow-body 737 MAX airliners - as early as October: at least, this is the timeline the company gives to its suppliers, Bloomberg reported citing sources. This indicates the growing optimism of the aircraft manufacturer, which hopes to get approval from the U.S. regulator to expand the production of aircraft, the agency said.

Details

According to Bloomberg's sources, the largest U.S. aircraft maker has notified suppliers to increase the production rate of 737 MAX airplanes to 42 units this month. Boeing is also laying the groundwork for subsequent production plan increases in April and at the end of 2026, the sources said. Together, these changes should result in an increase in production volumes to 53 airliners per month.

Following the 737 Max door plug tear-off incident in January 2024, which led to a change in the company's leadership, the U.S. Federal Aviation Administration (FAA) capped monthly production at Boeing facilities. In the second quarter of 2025, the aircraft maker brought 737 MAX production to 38 airplanes per month, the maximum level allowed by the regulator.

To further ramp up production of this line of airliners, the airplane maker has yet to convince the FAA that its Seattle-area plants and hundreds of suppliers can keep up the pace without compromising quality. Boeing's expectation that it will increase production of the 737 MAX in October indicates the company's confidence in regulatory approval, according to Bloomberg.

Why it's important

Increasing the pace of 737 MAX assembly is critical to reducing debt, improving financial performance and strengthening Boeing's position amid rising sales of rival Airbus models. Boeing management has previously said that cash flow will become positive as production of the flagship line of narrowbody airliners grows, and investors will be closely watching these figures in the third-quarter reports, which are expected to be published later this month, the agency emphasizes.

Boeing has signed several major new airplane contracts in recent months. In addition, a "huge order" may come from China if the negotiations between Washington and Beijing are successful.

What about the stock

Shares of Boeing on October 6 grew by 0.5% during over-the-counter trading on the Blue Ocean ATS. Since the beginning of 2025 quotations of the company rose by 22%, recovering from the collapse in 2024. According to FactSet, the majority of Wall Street analysts - 21 out of 26 - recommend Boeing shares to buy with a consensus rating of "above market" (Overweight).

Jefferies in late September reiterated a Buy recommendation on Boeing shares (Buy rating) and a target price of $255 per share. This is almost 18% higher than the current value. The investment bank cited, in particular, the publication of The Wall Street Journal, according to which the aircraft maker has renewed its focus on the development of a next-generation narrow-body airplane - the successor to the troubled 737 Max - and is discussing with Rolls-Royce innovations in the field of aircraft engines. The window of opportunity to launch a new model could open after 2035, Jefferies believes.

This article was AI-translated and verified by a human editor

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