Boeing CEO Says ‘Market Is Not Ready’ For 737 Max Successor Amid Talks With Trump On Tariffs Fallout

Boeing (BA) is not planning to develop a replacement for its best-selling 737 Max jets anytime soon, CEO Kelly Ortberg said to the Financial Times in an interview.

Ortberg reportedly said a new aircraft was not an immediate priority, as the “market is not ready now”.

Due to production problems and safety-related issues, Boeing has conceded the top spot in the narrowbody aircraft market to rival Airbus. According to a McKinsey report, Boeing’s European rival is expected to consolidate its lead by gaining a 50% market share in the segment by 2034.

Ortberg told the Financial Times that Boeing was not in a financial position to invest in a new plane, and the market is not prepared either, as airline customers continue to struggle with the durability of current engine technology.

He said airlines wouldn’t want to “jump to something riskier and more difficult”.

Boeing’s backlog of 737 jets stood at 4,287, which is about 76% of its total backlog.

The planemaker is also navigating an uncertain tariff outlook. Boeing is set to resume deliveries to China in June after the U.S. and China struck a trade deal to lower tariffs mutually.

However, President Donald Trump said last week that Beijing has violated the terms, raising concerns about China's response.

Ortberg reportedly described the relationship between the world’s two top economies as “dynamic” before adding that he had learned not to “hyperventilate, because it’s probably going to change tomorrow”.

He added that he was working with the Trump administration to ensure that Boeing was not “an unintended consequence” of the trade war with China.

While fears linger around the company’s business in the rapidly growing Chinese market, Boeing has signed several agreements with other countries looking to lower their trade deficit with the U.S.

He told the Financial Times that aircraft are “a very large dollar item, so they’d be a great opportunity for rebalancing”.

Retail sentiment on Stocktwits was in the ‘bearish’ (35/100) territory, while retail chatter was ‘normal.’

Ortberg had said earlier that Boeing was aiming to wrap up the certification processes of two variants of the 737 Max jets by the end of the year.

Boeing stock has gained 16.3% this year.

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