Boeing Said Prepping to Hike 737 Output as Soon as October

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00:00So Boeing has signaled to suppliers that it could raise output of its most profitable and most

00:06successful single-isle jet. And that's a real turning point 20 months on after a near-catastrophic

00:12crash involving one of its jets it makes flown by Alaska Airlines. So what it's telling suppliers

00:18is that the rate of production could go from 38 a month to 42 a month as soon as this month,

00:24and a series of increases then could lead it to increased production furthermore to around

00:2953 aircraft a month by the end of 2026. Now this has many financial implications, many

00:35upsides for it to improve its finances, particularly to pay down debt, to generate more cash and

00:41to potentially turn around 12 consecutive quarters of losses. Boeing can only do this though

00:47in conjunction with the US Federal Aviation Administration if they can prove with its

00:53supplies that it can increase production and the quality of that safely. Now this is great

00:58news for airlines who are waiting on these jets purely because we have seen this huge global

01:04supply chain crunch for new jets. And Boeing has not been immune nor has Airbus from delaying

01:11deliveries of new aircraft. And the airline industry, airlines are really keen to grow and

01:16they can't do so quickly because plane makers like Boeing and Airbus cannot produce the planes

01:21nearly as quickly enough.

01:22And it already has to convince the FAA that it can, you know, up its quality, you know,

01:27with the amount that it's already putting out per month, never mind upping the amount that it's

01:30putting out. But if it could get this hike into gear, would that bring it up to speed with Airbus?

01:39It's really fascinating because, you know, it has fallen behind over the last several years,

01:43particularly it goes back to, stems back to this fatal twin crashes of the 737 MAX in 2018 and 2019.

01:50And it is a bit of a watershed moment because as of this month, you know, despite the fact that

01:55Boeing has had a 20-year lead in the production of the 737, you know, the fact that Boeing and Airbus

02:01has been able to come on the scene later is actually now producing as many jets and has delivered as

02:07many as Boeing. So for, you know, for Boeing, it really has to catch up and to try and nullify this

02:13fast and very, very well sold Airbus rivaling jet. So, you know, clearly there's a lot for Boeing to

02:19catch up on. And this is really the start of hopefully a clear turnaround under CEO Kelly Oppberg.