Boeing gets approval to increase production of 737 Max

Boeing has obtained permission from the Federal Aviation Administration to further increase production of the 737 Max from the current 42 aircraft to 47 per month. This is a crucial step for the American group, which aims to improve profitability and strengthen cash generation after years marked by operational and reputational difficulties.

According to CEO Kelly Ortberg, Boeing expects to reach the new production pace within the next two months. The markets reacted positively: Boeing's share price rose as much as 3.7% after the manager's statements. However, the group's annual performance remains below that of the market: the stock has gained about 2.4 per cent since the beginning of the year, against +6 per cent for the Dow Jones.

Ortberg also highlighted the commercial progress achieved in China, where Boeing has secured a commitment to purchase 200 aircraft. While falling short of investor expectations, the deal represents the first major Chinese order for US commercial jets in almost a decade and marks a strategically important achievement for the US manufacturer.

The Chinese market is particularly relevant because Beijing tends to place centralised maxi-orders which are then distributed to state-owned airlines. In recent years, however, Boeing had lost ground to rival Airbus. As of 2022, major Chinese airlines have in fact ordered or promised to buy around 700 Airbus aircraft. Boeing, on the other hand, had not obtained a significant order since then-President Donald Trump's visit to China in 2017.

The relationship with Beijing had been further compromised by the 737 Max crisis: China was the first country in the world to ground the aircraft after the two fatal accidents and only authorised its return to service in 2023, long after the green light had been given by the US FAA.