:max_bytes(150000):strip_icc()/GettyImages-2158860663-b6dbc919ab494864b752f33b054ece32.jpg "Boeing Stock Drops on Report of Delayed 737 MAX Production Timeline")
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Key Takeaways
- Boeing reportedly expects to reach a key production level for its 737 MAX planes six months later than previously anticipated.
- The company plans to produce 42 of the planes per month by March 2025, compared with its prior estimate of September 2024, Reuters reported.
- The 737 MAX has been plagued by safety issues, including a panel that dislodged midair from an Alaska Airlines flight in January.
Boeing (BA) has pushed back its target date to reach a milestone production level for its 737 MAX jet, according to a Reuters report Tuesday.
The plane manufacturer informed its suppliers that it now expects MAX production to reach 42 planes per month in March 2025, compared with its prior estimate of September 2024, the report said.
Boeing maintains a so-called “master schedule” that is not an official estimate on the part of the company but is adjusted on a supplier-by-supplier basis depending on inventory levels. The company’s official production target of 38 MAX planes per month by the end of 2024 has not been changed, the report said. Boeing produced 25 MAX jets in July.
Boeing did not immediately respond to an Investopedia request for comment.
737 MAX Has Been Plagued by Safety Issues
The Boeing 737 MAX has been riddled with to safety issues, including an Alaska Airlines (ALK) flight in January during which a panel detached from the MAX 9 plane in midair, forcing an emergency landing. The Federal Aviation Administration (FAA) temporarily grounded certain MAX 9 aircraft for inspections soon thereafter.
Shares of Boeing fell 3% intraday Tuesday, giving back most of the gains made yesterday after the company announced a tentative agreement with two of its largest labor union partners. The stock is down nearly 40% since the start of 2024.