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Boeing expands Dreamliner output amid rising demand despite supply chain challenges

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Boeing expands Dreamliner output amid rising demand despite supply chain challenges
Policy
Webp a3
CEO Kelly Ortberg | Boeing

Boeing is seeing a significant rebound in production of its 787 Dreamliner aircraft as demand for widebody jets continues to rise. The company currently has a backlog of 1,001 units for the Boeing 787, with production slots sold out until 2030. This reflects a long-standing shortage of widebody aircraft as airlines respond to increased passenger traffic following the pandemic.

To address this demand, Boeing has expanded its North Charleston facility through a $1 billion investment, aiming to duplicate its final assembly line and increase output from seven jets per month today toward ten per month by 2026. By the end of the decade, Boeing targets production rates as high as sixteen jets per month.

"We see improved supplier flow as a key catalyst for continued production output growth. Parts availability and certification choke points also appear to be easing (unlike some of Boeing's other programs, like the 737 MAX and the 777X). Steady rate increases and deliveries should follow if Boeing can continue matching Airbus' sustained widebody ramp-ups. We analyze the continued growth of Boeing 787 production rates and the factors that have driven these figures upward."

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The Boeing 787 was developed to replace older models such as the Boeing 767 and offer airlines an efficient option for long-haul routes with fewer passengers. The jet first flew in 2009 and entered service in 2011 with ANA. Its design features composite materials, advanced electric systems, and new-generation engines, resulting in improvements in fuel efficiency, maintenance costs, trip expenses, and cost per available seat mile.

While initial development faced delays due to supply chain issues and technical challenges—including a battery grounding incident in 2013—Boeing eventually ramped up production to fourteen jets per month before cutting back during the COVID-19 pandemic. Production was consolidated at Charleston in 2021.

By early 2025, monthly output had recovered to five jets with plans to reach seven by year-end and approximately ten by 2026. As of mid-2025, output remains steady at about seven jets per month while expansion efforts continue.

A successful ramp-up will depend on several factors beyond facility expansion: "To unlock higher rates, not only does Boeing need to successfully expand its facility in North Charleston, but it also needs to maintain continued regulatory support. This plan would duplicate the 787's final assembly line, offering facility space that could potentially enable the sixteen per month target post-2028. Achieving these production targets would unquestionably establish the aircraft as the core workhorse of Boeing's twin-aisle offerings."

Risks remain for future increases in output. Supply chain fragility persists across components such as composites and avionics; engine delivery schedules could also affect progress. Regulatory oversight has intensified after recent incidents involving other Boeing models; any delays or quality issues could slow production further.

"Boeing's path to higher Boeing 787 production rates is exposed to extensive gating risks. For starters, the manufacturer's supply chain is extremely fragile, with composite materials, avionics, interiors, and seating all remaining as bottleneck threats. Any slippage in terms of delivery cadence or quality will result in much slower production timing. We also see propulsion availability as a factor that could limit the model's success. The manufacturer's GEnx engines and Trent 1000 powerplants could also face delivery delays."

Other potential setbacks include global trade disputes affecting material supplies like titanium or aluminum.

Expanding Dreamliner deliveries benefits Boeing’s financial outlook by accelerating cash flow from completed sales and strengthening supplier relationships through larger order volumes. Improved on-time delivery performance supports regulatory credibility and investor confidence.

"We see the Boeing 787 as the highest lever Boeing can pull to improve its long-term profit and loss. Converting its one-thousand-unit backlog more quickly will help strengthen its unit cost picture while also accelerating opportunities for future orders..."

Sales history shows three phases: an initial surge reaching over eight hundred orders within three years of launch; a slowdown during financial crises; then renewed growth after COVID-19 amid fleet renewal efforts focused on emissions reductions. Notable recent orders include United Airlines’ purchase of one hundred Dreamliners in December 2022—followed by fifty more in 2023—as well as significant deals with Air India, British Airways (thirty-two high-capacity variants), and Qatar Airways.

"The model has been Boeing's most consistent source of orders over the past two decades..."

With ongoing challenges facing other major programs like the Boeing 737 MAX—which experienced safety-related groundings—and certification delays impacting the upcoming Boeing 777X, continued success with Dreamliner deliveries remains critical for both operational stability and financial health at Boeing.

"With the Boeing 737 MAX facing a whole host of issues and the Boeing 777X still struggling to be certified, it is clear the role that the Boeing 787 plays..."

Regulatory compliance challenges are expected to persist alongside broader economic risks affecting material sourcing globally.

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