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The Federal Aviation Administration (FAA) said on Friday it will let Boeing Co. (NYSE:BA) increase production of its 737 Max jets to 42 per month, up from 38, following thorough safety inspections of the company's manufacturing process.
Check out the current price of BA stock here.
The agency set the production limit after a door plug blew off a 737 Max jet operated by Alaska Airlines Group Inc. (NYSE:ALK) in January 2024.
According to Fortune Boeing spokesperson said Friday the company followed a “disciplined process” using safety guidelines and performance goals set with the FAA.
“We appreciate the work by our team, our suppliers and the FAA to ensure we are prepared to increase production with safety and quality at the forefront,” Boeing said.
Production dipped below the 38-jet limit last year as Boeing faced federal investigations and a machinists' strike that shut down factories for nearly eight weeks. The company said it hit the monthly cap in the second quarter.
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The Virginia-based global aerospace company delivered 121 737s in the third quarter, with September seeing the highest number of 737 Max deliveries in a single month since 2018, according to Bank of America Securities (NYSE:BAC).
Separately, Boeing delivered its first 737 Max to Vietnamese airline VietJet Air, nine years after the order was placed.
According to reports, the FAA said on Friday the higher production rate won't change how it monitors Boeing's manufacturing or the company's push to strengthen its safety culture. Inspectors continued working at Boeing's facilities during the federal government shutdown that began Oct. 1, according to the agency.
Last month, the FAA restored Boeing’s ability to perform final safety inspections on 737 Max jetliners. The primary manufacturer of commercial jetliners hadn’t been allowed to do that for over six years, after two crashes killed 346 people.
CEO Kelly Ortberg told a Senate committee in April: “We won’t ramp up production if the performance isn’t indicating a stable production system.”
Meanwhile, Boeing is in the early stages of developing a successor to the 737 Max. Ortberg met with officials from Rolls-Royce Holdings PLC (OTC:RYCEF) earlier this year to discuss new engine development.
The Alaska Airlines incident was among alleged safety violations between September 2023 and February 2024 that led to the FAA seeking $3.1 million in fines from Boeing.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
