Boeing delays 737 Max production ramp to late 2027

Boeing does not expect to significantly increase production of its best-selling 737 Max aircraft until the second half of 2027. The delay is attributed to a slower-than-expected pace of wing production. CEO Kelly Ortberg confirmed on Tuesday that the company is targeting a production rate of 52 planes a month in the second half of 2027, up from the current rate of about 47 planes a month.

Production Challenges and Market Reaction

The announcement caused Boeing stock to fall 10% in trading on Tuesday. Ortberg emphasized that the company is prioritizing stability over speed. "I know everybody wants us to go faster but we’re going to do it right," Ortberg told CNBC’s Phil LeBeau in an interview. He added, "It’s more important that we do this ramp right than what particular month we achieve a rate break, and we’ll stay disciplined here."

Ortberg noted in a memo to staff that while expectations are rising, the company must elevate performance through "lean, productivity and efficiency improvements" while maintaining safety and quality standards. The company had previously planned to reach a production target of 47 jets a month by summer 2026, but Ortberg stated this milestone will now be reached "into early next year."

Third-Quarter Financial Results

Boeing reported a narrowed net loss for the third quarter ended Sept. 30, driven by increased sales in its defense unit. The company posted a net loss of $116 million, or 26 cents a share, compared with a $5.34 billion loss, or $7.14 per share, a year earlier. Adjusting for one-time items, the loss was 34 cents a share, which was worse than the 21-cent loss expected by Wall Street analysts according to LSEG consensus estimates.

Revenue rose 4% year-over-year to $24.19 billion, slightly beating the $23.84 billion expected by analysts. Free cash flow increased to $464 million from $238 million in the third quarter of 2025. However, revenue in the commercial aircraft business fell 3% to $10.72 billion. Boeing attributed the negative operating margin of 6.5% in this sector to a "less favorable delivery mix, higher projected costs associated with future production rate adjustments and higher estimated supply chain costs."

Regulatory and Contract Wins

Despite the production delays, Boeing secured several key certifications and contracts recently. The Federal Aviation Administration (FAA) certified the 737 Max 10, the largest in the Max family, last week. This followed the certification of the 737 Max 7 in August. Additionally, the U.S. Navy selected Boeing to develop its next-generation fighter jet, a contract valued at $20 billion.

"These accomplishments reflect the significant progress we’re making, and they’re made possible by the sustained focus of our team on safety, quality, and performance," Ortberg said. He acknowledged that progress is "not always going to be perfectly linear" but expressed confidence that the company is on the right track.

Why it matters

Aircraft deliveries are critical to Boeing’s cash flow, as the bulk of an aircraft’s price is paid upon delivery. The delay in ramping up production signals ongoing supply chain and manufacturing challenges, particularly in wing production. Investors reacted negatively to the cautious timeline, with shares dropping significantly. The company’s ability to stabilize production rates while maintaining safety standards remains a central focus for its recovery.

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Sources

• cnbc.com: Boeing (BA) Q3 2026 earnings
• investopedia.com: Boeing Shares Plunge on Slow 737 Max Production Ramp Plan
• devdiscourse.com: Boeing will not reach 737 production target until early 2027

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.