Sky Industry News

Duffy intends to maintain a production cap of 38 aircraft per month on the 737 MAX program until Boeing demonstrates improved quality standards. Meanwhile, Ortberg noted progress with resolving issues affecting the 777X flight tests. The plane resumed testing after addressing a thrust link problem that had halted operations since August 2024.

Brian West, Boeing's CFO, mentioned plans to increase production rates above the current cap later in 2025. As of January, monthly production was in the low to mid-20s range. West indicated that Boeing aims to achieve higher production rates in the second half of the year.

Ortberg highlighted six key performance indicators (KPIs) necessary for lifting production caps: notice of escape hours (NoE), part shortages, employee proficiency, rework by line, traveled work at rollout, and ticketing performance. He acknowledged Spirit AeroSystems' contributions during a strike and noted improvements in fuselage quality and flow.

Despite these efforts, West admitted that Boeing Commercial Airplane’s margins will remain negative in 2025 due to pressures from agreements with machinists represented by IAM. BCA ended 2024 with revenues of $22.8 billion while company-wide revenues fell to $66.5 billion resulting in an $11.8 billion net loss.