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Boeing’s (BA) production rate of its best-selling Max jets has almost reached the U.S. regulator-imposed monthly cap, said Olivier Andries, CEO of French firm Safran, a key supplier of engines to the planemaker.
Speaking at an annual meeting, Andries said that Boeing has been able to reinstate a more “dynamic” production profile after several delays that have weighed into the company’s earnings.
Safran and GE Aerospace, through their joint venture CFM International, produce a significant share of engines used in commercial airplanes. CFM's LEAP engines are used in all Boeing 737 MAX aircraft, and the company competes with Pratt & Whitney for Airbus A320neo contracts.
According to the report, a senior executive from Boeing’s Commercial Aviation segment said on Tuesday that the planemaker expects to stabilize 737 MAX production at 38 airplanes a month over the next couple of months.
Boeing was imposed with a production cap after a door plug blew out of an Alaska Airlines MAX aircraft in January 2024.
The company delivered 29 Max jets in April. Once production stabilizes at 38 for a few months, it intends to apply to the Federal Aviation Administration to lift the cap.
Retail sentiment on Stocktwits was in the ‘bearish’ (32/100) territory, while retail chatter was ‘low.’
One retail trader suggested that the production rate, not orders, would drive the stock in the future.
Boeing's total company backlog rose to $545 billion at the end of the first quarter, including over 5,600 commercial airplanes.
Boeing stock has gained 14.1% year to date (YTD).
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