Al Root

Boeing stock fell early Tuesday after The Air Current reported the 737 MAX production rate had fallen back due to challenges in wing manufacturing.

Shares were down 1.9% at $167.22, while the S&P 500 and Dow Jones Industrial Average dropped 0.4% and 0.7%, respectively.

The report initially implied that Boeing lowered "advanced" production of the 737 MAX to 38 a month from 31. Advanced production are suppliers and subsystems up the chain from final assembly.

The situation is more nuanced. Eventually, Boeing wants to get production to 38 a month. That's the cap set by the FAA, resulting from the January 2024 737 MAX 9 emergency door plug blowout.

Advanced production, however, isn't plane production. Boeing isn't producing, or trying to produce, MAX jets at a rate of 38 a month. It's slowly trying to ramp up production internally and at its suppliers. Some suppliers and subsystems might be ready to produce jets at 38 a month. Others might be trying to ramp close to 38 a month. Overall, Boeing and its supply chain just aren't there yet.

"As we have said, our team continues to focus on production stability and quality as we methodically increase 737 production," said Boeing in an emailed statement.

Boeing stock took a hit early Tuesday, but investors should be ready to hear about production increases and supply challenges for the foreseeable future.

Eventually, Boeing would like to make closer to 50 a month. That's a long way down the road after working on production and supply-chain issues and getting a blessing from the FAA.

Write to Al Root at allen.root@dowjones.com

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April 01, 2025 10:30 ET (14:30 GMT)

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