American aerospace giant Boeing (NYSE: BA) is preparing to raise its 737 MAX production to 42 aircraft per month following approval from the Federal Aviation Administration (FAA). This decision marks the lifting of production limits imposed after the emergency incident involving an Alaska Airlines aircraft in early 2024.
In a statement released on Friday, the FAA said, “Safety inspectors have conducted extensive reviews of production lines and confirmed that this modest increase in output can be carried out safely.”
Following the decision, Boeing began preparations to install new equipment and expand capacity at its manufacturing facilities in the Seattle area. The company’s CEO, Kelly Ortberg, was briefed directly by FAA Administrator Bryan Bedford.
Boeing stated:
“We thank our team, suppliers, and the FAA for ensuring that we are ready to increase production while prioritising safety and quality.”
This development is seen as a critical step for Boeing after a long period of production disruptions, supply chain bottlenecks, and financial difficulties.
According to the company’s second-quarter report, Boeing holds $11 billion worth of raw material inventory — comparable to the $6.4 billion stock level it maintained in 2018, when it was producing more than 50 737s per month.
However, Boeing’s financial burden remains high: the company’s total debt stands at $53 billion, compared with just $12 billion in 2018. Analysts predict that Boeing may return to profitability in 2026, marking its first positive balance sheet since 2018.
The FAA also restored part of Boeing’s authority last month to issue airworthiness certificates for the 737 MAX and 787 models. This authorisation had been suspended following the tragic crashes in Indonesia and Ethiopia in 2019.
As Boeing ramps up production under close FAA oversight, the company has built up a large reserve of spare parts and materials to guard against supply chain disruptions. Aviation analysts note that the company appears to be “better prepared than in previous cycles.”
Boeing shares rose 1.2% in after-hours trading following the announcement.
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