By the middle of 2023, Boeing intends to expand the 737 MAX’s monthly production rate from 31 to 38 in order to boost the company’s positive cash flow.
According to reports by Bloomberg citing people familiar with the matter, the Original Equipment Manufacturer (OEM) is planning a 38-monthly rate for the 737 MAX by mid-2023 and has been briefing its customers about the increasing production rate.
The OEM produced 52 of the type per month until the 737 MAX was grounded in the United States (US) from March 2019 to November 2020. Moreover, Stan Deal, Senior Vice President of Boeing and CEO of Boeing Commercial Airplanes (BCA), stated in March 2023 that the 737 MAX production rates will be ramping up “very soon.”
For the first time since 2018, Boeing was able to generate a positive cash flow in 2022, finishing the year with an operating cash flow of $3.5 billion. This amount was $15.3 billion in 2018.
With China Southern Airlines starting commercial operations with the narrow-body jet in January 2023, the 737 MAX program received a further boost with the restoration of services with the aircraft type in China. Nine airlines now fly the type in the nation as a result of other airlines also reintroducing the 737 MAX to their fleets, according to statistics from ch-aviation.com.
The 737 MAX-7 and MAX-10, on the other hand, are still not approved for flight, which is further limiting the number of planes Boeing can supply. Stan Deal has previously said that certification for the 737 MAX-7 should occur in 2023.
Boeing delivered 374 737 MAX airplanes in total in 2022 as opposed to 241 in 2021.
