Boeing CEO Kelly Ortberg admitted to investors on Wednesday that stabilizing production for the 737 Max is proving to be a slower process than the company had initially anticipated. Speaking at a Morgan Stanley industry conference, Ortberg noted that while the manufacturer is aiming to increase output next year, current progress has hit some friction. The revelation sent ripples through the market, causing Boeing shares to slide more than five percent in afternoon trading as investors reacted to the news of continued instability.
At the heart of the delay is a bottleneck at the Renton, Washington facility, where wing production has become a primary constraint. Despite these hurdles, Boeing is currently churning out roughly 47 aircraft per month as it attempts to move past several years defined by intense safety and quality crises. Ortberg assured attendees that there are specific plans in place to resolve the manufacturing constraints and get the assembly lines moving more efficiently.
Beyond current production woes, Ortberg offered an optimistic outlook regarding the Max 10, the largest variant in the family that remains years behind its original schedule. He indicated that certification for this particular model should arrive very soon. However, he remained cautious about potential windfalls from overseas markets. When questioned about whether upcoming diplomatic meetings between U.S. and Chinese leaders might spark new orders from China, Ortberg deflected, stating that any such announcements would happen at the airlines’ own pace rather than being tied to political timelines.