BA Kicks Off New 737 Max Production Line On July 6 —CEO Kelly Ortberg Says Higher Output Still Under Study

• Kelly Ortberg said increasing 737 production above 63 jets per month is currently under study, rather than a confirmed target.
• Boeing remains optimistic about reaching 10 Dreamliner (787) aircraft per month production by the end of the year.
• The company said there are no discussions about delaying deliveries and provided no update on the Lufthansa-related incident.

Boeing (BA) will begin building 737 Max aircraft on a new assembly line near Seattle on July 6 as it ramps up production. However, CEO Kelly Ortberg pushed back on speculation that Boeing could eventually produce as many as 70 jets per month, saying the company's current plan remains 63 aircraft monthly and any higher rates are still a “study activity.”

Ortberg addressed reports that Boeing could eventually boost 737 Max production to as many as 70 aircraft per month. “Right now, 63 is our plan,” he told CNBC, adding, “We'll look at that to understand where our constraints are, what the resilience is of the supply chain, but that's a study activity right now.”

Ortberg said Boeing's priority remains increasing production in a measured way while maintaining quality and stability across its manufacturing operations.

Shares of Boeing were down 0.75% on Friday, at the time of writing.

BA Continues Gradual 737 Production Ramp

Ortberg said Boeing is moving from producing 42 to 47 737 Max aircraft per month. He added that the new line in Everett, Washington, will serve as a catalyst for increasing Max production to 52 jets per month. “We’ll move when the production system says we’re ready to move,” he said.

Ortberg acknowledged Boeing's past struggles with production increases but said the company is taking a more disciplined approach this time.

Responding to concerns that Boeing may be ramping up too quickly, Ortberg said customers have been satisfied with recent deliveries. “Our customers are saying this is the highest-quality airplanes that they’ve ever received from Boeing,” he said. 

BA Targets Higher 787 Production

Ortberg also said Boeing is optimistic about increasing production of its 787 Dreamliner to 10 aircraft per month by the end of the year. While the 737 program is not facing major supply-chain issues, he said the 787 program continues to see some constraints, particularly involving aircraft seating and engine deliveries. “We know where those constraints are, and we’re working with our suppliers to solve those problems,” Ortberg said. 

China Orders, Delivery Demand Remain Strong

Ortberg also discussed Boeing's prospects in China following his recent visit with President Donald Trump. The CEO described the trip as “super successful,” adding that Boeing has not secured a new 737 order from China in nearly a decade.

“We got a commitment to open that market with an initial first quantity,” he said.

Ortberg also briefly addressed the recent Lufthansa Boeing 787 incident in which the aircraft's nose gear collapsed while parked at a gate. He said Boeing is working with regulators and the airline to determine the root cause, but does not yet have any updates. 

BA Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment around BA was ‘bearish,’ while message volume was ‘normal.’

BA shares have gained nearly 2.5% in the past 12 months. 

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